I'll link to support journalism and spam ads, but the bottom line is that he took out a $4 million loan in 2016 at a 15 percent interest rate. He then missed the first payment which, according to the agreement, caused the interest rate to rise to 23 percent.
He paid some of it back, but the balance was due in 2018 and now he's been in court and has been ordered to pay $2.4 million.
So let's talk about everything that he did wrong here.
1. First off, you have career earnings of $99 million to date. Why do you need a loan in the first place?
2. Second, you got a loan at a 15 percent interest rate, which then rose to 23 percent? Really? Were you shopping for the highest rate you could find? Did you misunderstand that a lower rate is better?
3. Here's the web site of the company that loaned him the money. https://www.democracycapital.com/ It looks like a 14 year-old created the web site in ten minutes. If you do a whois on that site, you end up on this site http://jimplacknews.com/, where some guy is making an argument that he can help athletes manage their money, apparently by securing loans for them at outrageous interest rates.
4. If you're going to borrow a large amount of money at usury rates, don't miss a payment and pay it off as soon as possible.
What on earth was so valuable to Adrian Peterson that he would do something like this? This whole thing is pretty much the stupidest thing I've ever seen anyone do. If he borrowed $4 million at a 23 percent interest rate, that means that he's been paying about $1 million a year in interest over the past two years. He's grossing about $2.5 million per year with the Redskins https://www.spotrac.com/nfl/washingt...peterson-4753/, so by the time you take out agent fees and taxes and stuff, he's been paying roughly two-thirds of his annual take-home income in INTEREST payments on this single loan.
Is Adrian mentally challenged or something? It seems like someone ought to get sued or arrested over this.
Originally Posted by -King-:
There are a lot of people aside from gold diggers whose sole job and purpose is taking advantage of athletes who don't know shit about money.
Originally Posted by displacedinMN:
Then his 8 kids will assume the debt.
Ahhh....no. That's not how that works. If there is an estate, then the estate owes, but if he's already broke, there is no reason to open an estate. If a creditor puts bills in the name of say any of the children, then that's a lawsuit. [Reply]
Originally Posted by Garcia Bronco:
Ahhh....no. That's not how that works. If there is an estate, then the estate owes, but if he's already broke, there is no reason to open an estate. If a creditor puts bills in the name of say any of the children, then that's a lawsuit.