Taking out a loan or using a charge card is not like borrowing money from a friend.
Yes it is a better way to do it because you don't risk hurting the friendship but there can be serious repercussions for not paying back a loan and it can cause some a serious strain on your personal finances.
We take out loans and charge things because we do not have the money to buy them outright.
That is fine in cases of buying a home or a car and even smaller things if we are smart about it.
Let's say you want to buy a new television and computer for your house that will add up to almost $1,500 total and you can make monthly payments of about $100 until you pay it off.
That is fine and there is nothing wrong with that, especially if once all your bills are paid you have well more than $100 left over each month.
The problem is that people do this and then charge somewhere else, and continue to charge until they have all their extra money and even some reserved for basic expenses, going to just pay the monthly finance payments.
When you try to take out a loan or start charging you need to make sure that you are not only making enough money to afford the payments but you also have a very strong credit score.
The mistake people often make is assuming their score was good because they got approved for the loan.
When you borrow money with a bad score it makes things worse because your payments go up and more of your money goes to interest rates than the actual money you borrowed.
To fix your score quickly before you need to borrow money you can get credit repair on the job.
Credit repair will fix any score in weeks and make it very easy for you to save thousands of dollars a year.
By David George
Yes it is a better way to do it because you don't risk hurting the friendship but there can be serious repercussions for not paying back a loan and it can cause some a serious strain on your personal finances.
We take out loans and charge things because we do not have the money to buy them outright.
That is fine in cases of buying a home or a car and even smaller things if we are smart about it.
Let's say you want to buy a new television and computer for your house that will add up to almost $1,500 total and you can make monthly payments of about $100 until you pay it off.
That is fine and there is nothing wrong with that, especially if once all your bills are paid you have well more than $100 left over each month.
The problem is that people do this and then charge somewhere else, and continue to charge until they have all their extra money and even some reserved for basic expenses, going to just pay the monthly finance payments.
When you try to take out a loan or start charging you need to make sure that you are not only making enough money to afford the payments but you also have a very strong credit score.
The mistake people often make is assuming their score was good because they got approved for the loan.
When you borrow money with a bad score it makes things worse because your payments go up and more of your money goes to interest rates than the actual money you borrowed.
To fix your score quickly before you need to borrow money you can get credit repair on the job.
Credit repair will fix any score in weeks and make it very easy for you to save thousands of dollars a year.
By David George