Buy now – repay quickly
“Luck never gives – it only lends.” – Chinese Proverb
Because of the way numbers work, you’ll pay very little interest if you pay a loan back quickly. For example, if you wanted to spend $15 000 on a swimming pool and borrow the whole lot at 10%, you’ll only pay $828 in interest if you pay it back within 12 months. If you waited 12 months, you’d certainly pay more for the pool as costs inevitably rise and you’d also miss out on a summer of swimming. This is a smart use of debt.