Charles Duhigg Quotes

I was so in debt by the end of 'Dust Devil,' having picked up the tab personally for the post-production of the movie, and having no way to recoup because I didn't own the rights to the movie. There was no way I could see any money back on it, so any money spent was just a dead loss.

Because the fees associated with a reverse mortgage are high, such loans make sense only for borrowers who expect to live in their home for a number of years.

Refinancing your mortgage usually makes sense if you can lower your interest rate by at least two points. But the most important question to ask yourself is, how long will it take you to break even?

If you can't afford the upkeep of your home, it makes no sense to do a reverse mortgage. You will just end up having to sell eventually when you realize you can't afford the home, and whether you have any equity left after the sale depends on the size of the reverse loan that must be settled.

Cash from a reverse mortgage can be paid out in several ways, including a lump sum, a monthly payment, a line of credit, or a combination of those. If you do not need money right away, it is usually a bad idea to take all the money upfront, since it starts accumulating interest charges immediately.

Your mortgage shouldn't have been treated as a wager - it should be a way to provide a home and financial stability for you and your family.

You can get in and out of credit cards in a hurry. Not so easy to get in and out of mortgages.

Escrow accounts are an important tool for homeowners to the reduce the risk of mortgage default on high-priced loans. Millions of Americans, including my wife and I, utilize these accounts to make monthly payments towards the annual financial obligations that come with homeownership like taxes and insurance.

For the movie 'Bhaskar Oru Rascal' I had to let go of a part of my agreed salary and in fact, had to lend money to the producer when he couldn't meet his financial obligations at the time of the movie's release.

You can pretty much trace when the big individual indebtedness kicked in, and it was when the credit card became generally available.

When you default on a secured debt, the creditor takes the asset that backs up that debt. When you convert credit card debt to mortgage debt, you are securing that credit card debt with your home. That's a risky proposition.

You also need to understand that when you consolidate credit card debt into mortgage debt - like a home equity loan or a HELOC [ home equity line of credit ] - you're taking an unsecured debt and turning it into a secured debt.

When you take out a loan, what's your obligation other than paying it back? You have no other obligation.

A big part of the equation for 'Winter's Bone' was making it for so little that we owe nobody. We had a guaranteed loan and were able to pay it back.

Modern economies rely on debt, which encourages productivity and growth. But that system of credit requires consequences for debtors who default.

Borrowing isn't inherently bad; it depends a lot on what the debt is financing.

Albert Einstein is reported to have said compounding is the eighth wonder of the world. Obviously, a dollar invested in your 20s is worth so much more than a dollar invested in your 60s.

If you waive loans, it will encourage everyone to opt for more as they think they can get away with it in future.

We've actually got a Chelsea loan WhatsApp group. The loan department set it up. Sometimes it drains your battery when everyone is messaging each other.

In Bakersfield, California, a Mexican strawberry picker with an income of $14,000 and no English was lent every penny he needed to buy a house for $724,000.

Liabilities are just assets in hiding.

A banker is a fellow who lends you his umbrella when the sun is shining, but wants it back the minute it begins to rain.

What you lend is lost; when you ask for it back, you may find a friend made an enemy by your kindness. If you begin to press him further, you have the choice of two things - either to lose your loan or lose your friend.

If you're going to buy something which compounds for 30 years at 15% per annum and you pay one 35% tax at the very end, the way that works out is that after taxes, you keep 13.3% per annum. In contrast, if you bought the same investment, but had to pay taxes every year of 35% out of the 15% that you earned, then your return would be 15% minus 35% of 15%-or only 9.75% per year compounded. So the difference there is over 3.5%. And what 3.5% does to the numbers over long holding periods like 30 years is truly eye-opening.

Every sensible banker understands that Greece should not have received any more money: a bankrupt state that can never be expected to repay loans is not a good debtor.