Paying to borrow your own money – Bankrate
- November 9, 2020
- By: Greenpath Financial Wellness
Does it make sense to pay to borrow your own money? BankRate asked GreenPath’s Katie Bossler to weigh in.
If borrowing money is the best way forward for a borrower, a passbook loan may be one of the best options. “The advantages of passbook loans include typically much lower interest rates compared to unsecured loans or credit cards and easy credit approval,” says Katie Bossler of GreenPath Financial Wellness, a nonprofit financial coaching organization. The interest rates on passbook loans may be as low as 2 percentage points above the APY of the savings account, meaning that if your savings account earns 1 percent, you may only have to pay 3 percent in interest on your loan.
If you’re looking for the best way to borrow money, be sure to do plenty of research to do what is right for you.
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Katie Bossler has been with GreenPath since 2003. She currently serves as a Quality Assurance Specialist and is based out of our Detroit office. Katie passionately believes everyone can achieve financial wellness and is grateful to dedicate her work in helping GreenPath remix the American Dream so it works for everyone.