This is the definition that will explain the concept of this word. This is the definition that will explain the concept of this word. This is the definition that will explain the concept of this word.
This is the definition that will explain the concept of this word. This is the definition that will explain the concept of this word. This is the definition that will explain the concept of this word.
Earnings Path: Elevated
Her story starts when she takes out an OBL with the to complete a degree in business studies.
She stays for a year, making 12 monthly OBL payments.
Ava decides to make a career change into a real estate sales role which is purely commission-based. At first her salary is lower, but just over the $40,000 threshold so she makes only modest payments.
After college, Ava finds a graduate job paying a high wage in the top 30% of her fellow graduates.
The next year, her sales skills are starting to pay off and she begins earning serious commissions.
She is paying off her OBL as her salary grows, but the annual payment limit prevents her from owing more than $5,000 in a given year, so she ends up paying less than 5% of her wage.
After a few more payments, Ava’s total payment reaches the total payment cap and her OBL is concluded.
Knowing that OBL payments are scaled to income was a factor in Ava taking the risk to make a career change and focusing on her long-term career growth.
Thanks to the payment limits placed on Ava’s OBL, she knew she would never pay more than the amount allowed by the salary cap and was able to conclude her OBL early after reaching the total payment cap.
Even though she ultimately paid more than the average borrower, Ava benefited from the freedom her OBL afforded her and the controls that limited her payments regardless of her level of financial success.
This tool is meant only to provide a brief explanation of how OBLs can work in practice.
As with loans and other financing options, individual OBL contracts will vary and may include additional terms not discussed here such as: prepayment options, emergency forbearance, late payment penalties, among others.
Always review the specific terms of your financing options and choose the one that is the best fit for you.
Her OBL ended after she reached the total payment cap.
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