Originally Posted by InChiefsHell
My dad used to teach us lessons in debt management. The first guitar amp I bought was second hand for like 200.00 or something. He fronted me the cash, then wrote up the terms for the loan, only charging me 10% interest as I recall. Back in the 80's this was not a bad rate. We worked out the payment plan, and he explained to me that if I got it done sooner (made more than the minimum payments) it would cost me much less. But the ultimate lesson was, it's better to just save the money and buy things you want in cash...not make payments.
My folks also gave us an allowance. We did a LOT of chores around the house for 5 bucks a week, but we learned the value of a dollar and that you have to work for stuff.
My dad used to let me borrow from him, but he charged interest rates around 30%, and if I missed a payment, he would send his cousin Jack Bob to rough me up. One time I paid early using my birthday money. But dad said there was a hidden penalty to early payoffs, and I had to forfeit over my Christmas gift that year.