Borrowing money to invest can help you grow your money, but it can also lead to losses. Here are the top three dangers:
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You can lose a lot of money.
If some or all of your investments are lost, you still have to pay back what you borrowed.
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It costs more to invest.
You don’t get to keep everything you make, because you have interest to pay on the loan.
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You may have some surprise costs.
With some loans, the interest rate can change at any time. It may cost you a lot more than you thought to pay back what you borrowed.
Remember: The dangers of borrowing to invest are real.
Make sure you are ready to cover any losses with other savings.