She paid seven percent interest on the loan.

loans to this bank.

This guy, he does have interest.

We all have heard of it.

Now we start off saying this probably not a good idea and you got a sense of that, because we're essentially paying 25 interest for every two weeks, not for every year.

Lets say it looked like this where this over here is 5 .

Interest on loans is high at present.

The loan carries 5.5 interest.

I think most of us have a sense that payday loans are probably not the best source for a loan, that they probably charge a lot of money to those people who need that cash really badly.

Wealthy people know. Educated people know.

And let's say you still owe pretty close to 150 thousand on the loan to the bank your loan might have even been an interest only loan but even after a year or two you're probably not going to pay down the balance of your loan too much it might be like 140 thousand, or 145 thousand

I'll just abbreviate that as Nl.

But for the simplicity of this argument,

He's got the drop on her.

And for the sake of simplicity, I'm going to assume that the loans in this presentation are interest only loans.

Because a father's supposed to be able to talk to his son, that's why.

Can a bank just continue issuing loans and checking accounts indefinitely and essentially collecting the difference in the interest between the interest it gets on the loan and the interest it gives on the checking account?

And this is how a I don't want to say a traditional

I think you can get change.

There might be a little bit of paying down the equity.

So I stick them all inside of that.

right?

I am right now thirty four years old and

We're paying an APR of 650 .

Circumstances are entirely favorable to us.

She has an advantage over me.

This will work to our advantage.

Rick Mm hmm.

Hey, Lone Ranger.

Did you get the loan?

I sold the house to advantage.

I sold the house for a profit.

That's basically how this thing operates.

The evidence is on our side.

Now the advantage is theirs

I seize the moment and turn it to my advantage.

Banks charge higher interest on loans to risky customers.

Six percent home loans represent the industry average now.

A mortgage rate of six percent is becoming the current industry average.

Walls have ears and Shoji style Japanese paper sliding doors have eyes.

I can pay off my bank loan!

So we add back the taxes, which gets us to pre tax.

They say, well, I don't want to put it in my bed.

Drawing 9 interest.

The decision was in favor of the defendant.