Donald Trump reportedly used a bail bondsman after being arrested at Fulton County Jail in Atlanta, Georgia, on Thursday, paying $20,000 of his bond set at $200,000 and taking out a loan for the rest of it. The fact that the former president resorted to such a measure has sparked questions on social media about the state of his finances.
Not exactly. Rich people pay cash when doing so avoids fees. It would only make financial sense if bail bonds in Georgia go for below market rates.
If he could have paid bail through a PAC or one of his companies, that would most probably be cheaper.
He likely doesn’t have $200K to his personal name (to avoid tax) and is probably not allowed to pay bail from his PAC or company.
Rich people take loans when the loan is cheaper than an investment. If he can borrow at 10% and has money making. 12% there’s no reason not to take the loan. Rich people almost never use cash and they have very few cash in hand
No, absolutely not.
No rich person is paying retail interest rates of 10%.
If Trump could access his PAC money, he would be paying the bond in cash and have a loan against his PAC with favourable terms.
Rich people almost always pay cash with funds secured by low interest loans from their company or private bank.
Not all loans are created equal. High interest retail debt is for poor people to get stuck in debt traps. Low interest financing is for rich people to avoid taxes and leverage their money for more.