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Interest free…

Posted by on 22. June 2007

I’m now finally out of interest bearing bank loans as I was able to convert my car and personal loan into a company loan… Thank God, the interest rate is quite a heavy burden… though seeing how Citibank and BPI allocated my payment between interest and principal, I feel that it’s not fair yet I’m helpless as it’s how they designed this loan packages… The amount applied to the interest was so big that the deduction in the amount I have to pay was very minimal… Apparently, this loans are not meant to be paid in advance but at least, I still get to save on interest in the future… The worst part of being able to know your financial management is that you are able to equate risk and rewards into this type of transactions.

The process of inquiring and getting breakdowns was another frustrating part… Imagine BPI after not being able to fax the breakdown once, they transferred the documents for pick up, which would be impossible to happen since they never informed me… Citibank didn’t even bother to send the breakdown… Well, had to pay everything off before I experience another round of interest… and the savings in the future is what makes this ordeal a bit tolerable…

For the company loan part, that should tie me down for four years… not really … I guess I’d like to maintain my flexibility in my career options so I’m aiming to have sufficient assets in a year to cover the liability… through savings, investments and probably, to do something which I’ve always wanted to do – to teach MBA part time. Though teaching is something I’d still want to think over as it would also mean giving up much of my travels… As thing are, there’s always an opportunity cost in every decision… It’s just that I’d have to make do with what is available and where my choices leads me…

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