How much Money have you paid out in interest in your lifetime?

This whole financial fiasco had got me thinking how much money i have paid in interest on things i financed. How much farther along i would be if i could borrow money from the Fed at the rates that financial institutions do.

Why is it even legal for these corrupt institutions to make money off of us for borrowing our own money? Most institutions borrow at a very low or no interest rates then loan us our own money at a considerable increase in rates thus making money off of doing nothing.

My home, i will pay back over 350,000 on borrowing 170,000 at 4.5% interest, if i could borrow directly from the Fed i could save a substantial amount of money at 1% or less. Student loans, same thing, cars, you name it someone made large sums of money by doing nothing but pushing some keys from one number to another, from one name to another.

So here we are all over the world borrowing money from ourselves and making large institutions rich for doing nothing, am i missing something or do you agree?

My dad told me when i was young, if i want something that i cant afford you must wait till its affordable.

If you need something you cant afford then a loan/HP is okay.

luckily every time ive needed something, ive just got the thing i wanted at a later date.

Bad thing is that i dont have a credit rating, because i never borrowed so actually he was wrong and i could be in a potentially worse place for it.

So i kept all my money so far which is both good and bad. If the economy collapses and i end up with less than a mass borrowing freak, im going to be extremely upset.

reply to post by LittleBlackEagle

You are not missing a thing there, for us what we have paid out in interest is incalculable to say the least.
We did pay off our home very early due to an inheritance that just covered our outstanding balance.
After doing that we have only gone cash here and that includes vehicles.....
But before that we were paying heavily just like you stated in your OP.

I would love to have some of that back as we would be living high on the hog now, but as you pointed out already only certain people can live good.

Some must pay and someone must reap the profits.....
Excellent post and S&F.

Regards, Iwinder

reply to post by LittleBlackEagle

So here we are all over the world borrowing money from ourselves and making large institutions rich for doing nothing, am i missing something or do you agree?

Not all of us.
I don't do credit or financing and never have and to this day have not a single debt.
If you can't pay cash then save for it because you can't afford it.

Credit is another word for debt....I don't do debt.

To each their own though.

Originally posted by Biigs
My dad told me when i was young, if i want something that i cant afford you cant wait till its affordable.

If you need something you cant afford then a loan/HP is okay.

luckily everytime ive needed something, ive just the thing i wanted at a later date.

Bad thing is that i dont have a credit rating, because i never borrowed so actually he was wrong and i could be in a potentially worse place for it.

So i kept all my money so far which is both good and bad. If the economy collapses and i end up with less than a mass borrowing freak, im going to be extremely upset.

edit on 26-3-2012 by Biigs because: (no reason given)

i can certainly understand that. i pay my debts and have an excellent credit rating while many can go bankrupt and have their debts pretty much erased. debt shouldn't be accrued for money we indirectly borrow from ourselves, it's just wrong and has become the biggest scam to date.

reply to post by LittleBlackEagle



More Debt info than interest, but you can find the average amount of interest paid out at the bottom:


www.creditloan.com...


The first payment-based debt for the average American gets incurred while still in high school.
DEBT – The Department Store Card
Interest rates on department store cards can be as staggering as 33%.
Target is in the top 10 issuers of credit cards.
Over 173 Million Americans own at least one credit card
DEBT – The First Credit Card
The average rate for standard bank credit cards is around 19%.
84% of college students have credit cards.
Only 2% of undergrads have no credit history.
The average undergrad has $3,200 in credit card debt.
DEBT – The Undergraduate Student Loan
The average student amasses over $20,000 in student debt toward his/her first degree.
DEBT – The Graduate Student Loan
On average, master’s degree students take on an additional $17,000 in student loans.
Doctoral students amass another $29,000
Med School graduates leave school with an average of $113K in debt.
Half of all college graduates have 4 or more credit cards.
The average graduate student has $8,600 owing on his/her credit cards.
DEBT – The Next Credit Card
¾ of American households have multiple credit cards.
DEBT – The Auto Loan
The average auto loan is $30,738, a 40% rise in the last 10 years.
Most auto loans are over 6 years in length.
This is double the loan term of a typical auto loan 25 years ago.
The average auto loan interest rate varies between 7% and 9%.
DEBT – Mortgage
The average home mortgage costs around $240,000
After 30 years of making payments, a homeowner with a $240,000 mortgage loan will have paid over $580,000 on his/her house.
DEBT – The Second of Third Auto Loan
Two-thirds of all American households own 2 or more automobiles.
Most Americans use loans to finance every vehicle they drive.
DEBT – More Credit Cards
By age 60, the average American has 5 or more credit cards.
The average balance per household in America with credit card debt is $10,637.
The median credit limit on family credit cards in America is $18,000.
DEBT – The Refinance
Refinancing a mortgage is often an attempt to consolidate overwhelming debt from a variety of sources.
On average, about half of refinances result in a higher overall loan amount.
The average American has a total of 13 credit obligations right now.
Over a lifetime, the average American will pay over $600,000 in interest.

Originally posted by Iwinder
reply to post by LittleBlackEagle

 

You are not missing a thing there, for us what we have paid out in interest is incalculable to say the least.
We did pay off our home very early due to an inheritance that just covered our outstanding balance.
After doing that we have only gone cash here and that includes vehicles.....
But before that we were paying heavily just like you stated in your OP.

I would love to have some of that back as we would be living high on the hog now, but as you pointed out already only certain people can live good.

Some must pay and someone must reap the profits.....
Excellent post and S&F.

Regards, Iwinder

i think it's safe to say if people could have borrowed for their home or to start a business directly from the Fed we the people would not be in a depression currently. we are here not only because of the middlemen making money off our backs, but then they gambled it away and lost money they never had.

Originally posted by DrumsRfun
reply to post by LittleBlackEagle

 

So here we are all over the world borrowing money from ourselves and making large institutions rich for doing nothing, am i missing something or do you agree?

Not all of us.
I don't do credit or financing and never have and to this day have not a single debt.
If you can't pay cash then save for it because you can't afford it.

Credit is another word for debt....I don't do debt.

To each their own though.

i think it's great you could do that, but i feel that any American should be able to borrow directly from the Fed at little to no interest just like the middlemen banks do. so my argument is not whether we should borrow, but whether we should be able to do it like the elite do, after all that's what made them elite and us middle class and poor class.

Originally posted by LittleBlackEagle

Originally posted by Iwinder
reply to post by LittleBlackEagle

 

You are not missing a thing there, for us what we have paid out in interest is incalculable to say the least.
We did pay off our home very early due to an inheritance that just covered our outstanding balance.
After doing that we have only gone cash here and that includes vehicles.....
But before that we were paying heavily just like you stated in your OP.

I would love to have some of that back as we would be living high on the hog now, but as you pointed out already only certain people can live good.

Some must pay and someone must reap the profits.....
Excellent post and S&F.

Regards, Iwinder

i think it's safe to say if people could have borrowed for their home or to start a business directly from the Fed we the people would not be in a depression currently. we are here not only because of the middlemen making money off our backs, but then they gambled it away and lost money they never had.

How true that is, when we first got married many many years ago we had little choice but to use credit and looking back now it was excessive..... mostly credit cards because when the exhaust went on the car we needed it fixed pronto to get to work....
Greedy banks,
Regards, Iwinder

Originally posted by facelift
reply to post by LittleBlackEagle

 

More Debt info than interest, but you can find the average amount of interest paid out at the bottom:


www.creditloan.com...



DEBT – The Refinance
Refinancing a mortgage is often an attempt to consolidate overwhelming debt from a variety of sources.
On average, about half of refinances result in a higher overall loan amount.
The average American has a total of 13 credit obligations right now.
Over a lifetime, the average American will pay over $600,000 in interest.

that's pretty incredible isn't it.

we give all that money to middlemen institutions, for doing nothing, in order to borrow money from our own govt.\selves, now that should make anyone disgusted.

I have zero debt and never owed any company nothing.

I'v been saving to buy a house for 2 years, I dont have allot in there and understand it will take me 10-15 years to buy a nice house, but I'd much rather do it how I am than get a loan out and pay massive interest rates. I pay rent at the moment which is a pain in the butt, but I keep my bills to the minimum and reduce my energy consumption to reduce my bills. I'v also just bought a bike so I'll be riding to work from next week (task!)

I buy things I can afford. I choose to live a good life, go places and be able to eat healthy food rather than buy over priced clothes, new cars and junk food.

I also shop at more than one super market, I go to various places for different types of food to again, keep the cost low - as well as helping local shops in the mean time by buying their meat and veg which is allot more tastier and the use by dates are much longer than the super markets.

Out of a £2,500 joint income with my partner, we save around £1000 a month. With pay rises and job progression
, more can get saved and faster I can buy my house, ouright with cash

Only buy what can you afford

When a taco costs $100 dollars I will laugh at how sad I was over paying a few thousand in interest back in the 00s.

Originally posted by n00bUK
I have zero debt and never owed any company nothing.

I'v been saving to buy a house for 2 years, I dont have allot in there and understand it will take me 10-15 years to buy a nice house, but I'd much rather do it how I am than get a loan out and pay massive interest rates. I pay rent at the moment which is a pain in the butt, but I keep my bills to the minimum and reduce my energy consumption to reduce my bills. I'v also just bought a bike so I'll be riding to work from next week (task!)

I buy things I can afford. I choose to live a good life, go places and be able to eat healthy food rather than buy over priced clothes, new cars and junk food.

I also shop at more than one super market, I go to various places for different types of food to again, keep the cost low - as well as helping local shops in the mean time by buying their meat and veg which is allot more tastier and the use by dates are much longer than the super markets.

Out of a £2,500 joint income with my partner, we save around £1000 a month. With pay rises and job progression
, more can get saved and faster I can buy my house, ouright with cash

Only buy what can you afford

that's fantastic but again my point isn't in whether we should borrow or not but in how the system is destroying us that do by loaning us our own money.

Every time the Fed prints more money they are devaluing your money to loan to institutions who then mark it up and loan it to the people that already should own it. i hope that even makes sense because it boggles the mind and i think it's designed to so most people don't catch on to the scam.

imagine if you and i owned our own money, we could collectively loan money to eligible people and company's at low interest and make money instead of paying 600,000 in our lifetimes in interest thus propping up a corrupt system of bankers.

Mortgage £200,000 @ 1.99% = 300 payments over 25 years for £850 total payed back 255,000

In the bank £200,000 @ 6% interest for 25 years with no additional savings added you will still have 200,000 and it wont be worth the same amount of gold.

so the bank uses my £200,000 to lend to a guy for his mortgage and makes 55,000 in 25 years. But in actual fact if i dont top it up or get an insane interest rate, i cannot beat inflation. Doomed to make nothing while MY MONEY is being used to make the bank money.

sounds totally legit.

Here is a good link to illustrate the OP's position that they are all criminals indeed.....
Link
credit.about.com...

If you have a $5000.00 debt on a credit card in general it will take you 22 years folks, to pay it off at the minimum payment schedule.

That is if you never use the card again.......imagine that 22 years for 5 grand.......scary thoughts indeed.
Regards, Iwinder

PS that is at 14.9 % and you will pay more than the balance of $5000.00 in interest.

22 years of life to pay off 5 grand with over 5 grand of interest.

we do have a credit card for road trips etc here and our interest rate is 19.9 % but if we use it we pay it off pronto.

Regards, Iwinder

Originally posted by Biigs
Mortgage £200,000 @ 1.99% = 300 payments over 25 years for £850 total payed back 255,000

In the bank £200,000 @ 6% interest for 25 years with no additional savings added you will still have 200,000 and it wont be worth the same amount of gold.

so the bank uses my £200,000 to lend to a guy for his mortgage and makes 55,000 in 25 years. But in actual fact if i dont top it up or get an insane interest rate, i cannot beat inflation. Doomed to make nothing while MY MONEY is being used to make the bank money.

sounds totally legit.

edit on 26-3-2012 by Biigs because: (no reason given)

yeah you can say that again! it's the biggest scam going and it's legal according to our elected officials.

reply to post by Iwinder


that's a good layout of how to figure these interest payments out, thanks for the link.

like has been mentioned earlier the average person pays 600,000 in interest over their life times. take the number of people working now which should be around 146,743,000 according to 2007 numbers and if you believe the govt. unemployment figures, lol, from answers.com wiki.answers.com...
and multiply that times the interest paid and you have 88,045,800,000,000 or 88 trillion dollars being made on interest alone, by bankers in about a 30 year span give or take on average.

what's wrong with that picture? well when that kind of money gets circulated without any service or goods being done or made you get what we have today, a completely screwed up financial system.

Originally posted by n00bUK
I have zero debt and never owed any company nothing.

I'v been saving to buy a house for 2 years, I dont have allot in there and understand it will take me 10-15 years to buy a nice house, but I'd much rather do it how I am than get a loan out and pay massive interest rates. I pay rent at the moment which is a pain in the butt, but I keep my bills to the minimum and reduce my energy consumption to reduce my bills. I'v also just bought a bike so I'll be riding to work from next week (task!)

I buy things I can afford. I choose to live a good life, go places and be able to eat healthy food rather than buy over priced clothes, new cars and junk food.

I also shop at more than one super market, I go to various places for different types of food to again, keep the cost low - as well as helping local shops in the mean time by buying their meat and veg which is allot more tastier and the use by dates are much longer than the super markets.

Out of a £2,500 joint income with my partner, we save around £1000 a month. With pay rises and job progression
, more can get saved and faster I can buy my house, ouright with cash

Only buy what can you afford

If I had my time to do again, I would do this, as it is I am stuck with a house that is now worth less than the mortgage...................

reply to post by blueorder


it's not your fault, you made your payments and they screwed you out of interest and are working on collapsing the economy through hedging and legal gambling. just ask jon corzine how it's your fault.

Originally posted by LittleBlackEagle
reply to post by blueorder

 

it's not your fault, you made your payments and they screwed you out of interest and are working on collapsing the economy through hedging and legal gambling. just ask jon corzine how it's your fault.

couldn't have moved at a worse time too friend- 2007, we just had our first child and put all the equity from our first property (a flat) into a family home- not only has that £110,000 deposit "evaporated", a further £40,000 is now off the value of the property.

Crazy times brother.....