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Interest Is a Rental Payment on Money

February 3, 2022 | Posted by: Michael Boccia

I once heard someone say that 'interest is the payment that you make to someone
when you decide to rent their money.'
The higher the rent, the more you pay.
I’ve always thought that was a great way of putting it.
Because much like paying rent on anything, a rental of anything can be seen as
either acceptable or expensive.
The current interest rates on mortgages are ACCEPTABLE, but the interest on credit
cards IS NOT.
When we rent something, like a car, most of us want to shop around and get the best
daily rate.
Yet when it comes to money, people find themselves paying way too much 'in rent'
for it.
As an example…
Interest rates are at historical lows, yet I have clients whose credit card company is
charging them 20% plus interest per year.
That’s excessive rent.
The smart fix for any high interest loans that you may have is to consolidate them
into your LOW RATE mortgage.
It’s easy to do.
I’ve been able to save many families $1000 plus a month by optimizing their loans
and credit card balances in this way.
And when you tally up the savings over a year - $12,000 buys a great vacation.
So, I’d like to encourage you to think about Optimizing the interest you are paying
across all your loans.

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