And surprisingly one I hear often. Maybe not in so many words, but the question comes up quickly in conversation.
People say “But, I asked my banker and they told me to take out a loan. What do you suggest?”
That may or may not be the answer. Usually, borrowing from a bank to pay someone else is a bad idea. The exception, of course, is a mortgage. Not too many of us have enough on hand to buy a house.
Or, they say “You don’t sound like a banker!”
That’s because I am not a banker. I don’t want you to do things that are not in your best interest. I want you to have your financial house in order. If your money system is broken, you’re broke.
Am I right?
Ronda Cobb, the Money Coach™ provides systems, coaching, and classes to maximize your money, reduce or eliminate Medical Debt, improve your credit score, reduce regular debt, save on interest payments, plan for life & retirement, and most importantly, learn how to create sustainable wealth.
In a nutshell, we increase your financial literacy. And we get results (we don’t mind saying that because it’s true).
Ronda Cobb, the Money Coach™ also has an insurance license (in certain states) and is therefore legally and ethically responsible to make moves that are in the customer’s best interest when advising on insurance items. That responsible behavior carries over into everything we do.
If you want to improve your financial literacy, get out of debt, improve your credit score, plan for financial success, plan for retirement, or learn how to create wealth — consult Ronda Cobb, the Money Coach™.
And now the rest of the answer:
A banker is an employee of the bank whose only job is to make money for the bank.
Banks make money from the fees you pay, interest on loans, and high interest credit cards. They make money when you pay on time and even more when you pay late. They make money when you use your debit card.
Under certain circumstances, they can also do things like call loans in early, foreclose on your home, repossess your car, etc. They make a lot of money on these circumstances.
These circumstances are avoidable when your money house is in order.
The banker has no legal, ethical, or moral responsibility to do what is in the customer’s best interest. They work for the bank or credit union and must follow the rules and regulations of that institution, without regard to the customer’s well-being.
For example, where we would say “Cut your debt by increasing your payments and lowering your spending,” a banker would say “Let’s do a debt consolidation loan and your payment will be less.”
That loan sounds great until you realize all the pitfalls of that action and how much they make on those loans.
If you want to get into debt, spend money on high interest loans and credit cards, or contribute to the wealth of the bank owners, then consult a banker. We call this learning the hard way.
Which is better for you? Choosing to learn or learning the hard way?
©2023 Ronda Cobb, the Money Coach™
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