this post was submitted on 14 Jan 2024
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[โ€“] tooclose104 25 points 1 year ago (22 children)

I feel like I'm too poor to understand what happens between steps 2 & 3 without having a job. How are they paying the loans off? Where does that money come from? And if they have an income in order to pay the loan, why get the loan to begin with?

[โ€“] [email protected] 5 points 1 year ago

The current loan gets rolled into the next loan and becomes a revolving door of credit. As long as you don't spend faster than the assets appreciate you'll always end up ahead.

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