Personal Finance: It is easy to obtain finance in today's world providing you have a job, credit card or willing associates who are prepared to act as garantors for you. Repaying loans however, is a wholly different matter and it does not take long for the novelty element of your purchase to wear off. Loan interest rates can range (houses not included) from 10% to a massive 30% (as is the case with some credit card accounts. and repayments with a high level of interest can be a great burden. If you are contemplating buying a major article on credit, dont be in a hurry and ensure that the purchase can justify the long term repayments burden that you will incur.
Business Finance: Starting and running a business on borrowed finance alone can be a very risky business indeed. It is a good rule of thumb that if you use borrowed money to capitalise your business it should only be done on a ratio of around 2 to 1; that is, one dollar borrowed capital to every two dollars of principle invested money (your own money). The exception to this could be in relation to the purchase of equipment that is required for your business to function or grow (research into the prospective returns from equipment purchases should be undertaken prior to such an aquisition).
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Payment Calculator
Use this handy form to get an idea how much your payments would be on the portion of the cost that you finance.
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