As a brief followup to yesterday's blog, let me further illustrate for you the comparison between a compounding rate vs. a non-compounding rate. At the end of year three on a $50,000 advance, 3.5% monthly compounding rate you would owe $168,000. At the end of year three on a non-compounding 15 % every 6 month rate you would owe $95,000.
Is that a significant difference, or am I crazy? (Don't answer that).
Moral of the story; Don't take a "quick fix" and allow your client to wind up with a "suffocating , compounding rate" which will make it very difficult to ultimately resolve the case.
Stay on top of things!
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