Problems is that people dont realize how much you actually pay for a loan. You dont just pay the debt, you pay off interest as well and these typ of loans isnt cheap.
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Problems is that people dont realize how much you actually pay for a loan. You dont just pay the debt, you pay off interest as well and these typ of loans isnt cheap.
That's why it is better for the Swedish economy than saving first and travelling then.
You borrow 5k euro, you pay back 6k euro and you need to work hard in the meanwhile :) Better than if you were saving (i.e. not spending on services and goods) :)
I would not say its better for the swedish economy. Its mostly better for the loan institutes. Less money to spend on the rest of the economy.
They would likely be local, though. And they (their employees and management) spend money within the economy, don't they?
Banks and financial institutes is always out to keep the money they make. Look at what happend to Nordea when some swedish politicians talked about making a bank tax to limit how much the banks can profit.
I dont trust the bank to actually do what is best for me.
Neither do I, but a loan is commonly considered as an incentive that makes you work on settling it (given that it is a reasonable amount of money, you can hardly settle down 5,000,000 euro debt with high interest rate, which makes it grow faster than you can pay it out).
I think you overestimate how litterate people are with their understanding of money. Sweden has one of the highest debt level per capita and just image what will happen when its bursts. Its going to be Greece 2.0.
But that just my take, Im really concerned with how the economy is doing here and that people are totally unaware of what we are heading.
Well, you can still opt for living elsewhere, it's quite easy for the Europeans ;)