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When Should You Buy a Car with Credit Instead of Cash?

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  Many people consider buying a car as an investment, but that’s not necessarily correct. Investment makes you money.  Your car is an asset because you can sell it later for a chunk of money. Therefore, when you walk into a dealership, it’s crucial that you know how you’re going to pay for it. While paying cash may seem a good decision, buying a car with credit can be a better one.   So, when should you buy a car with credit instead of cash? Let’s find out: You have a limited budget When you want to buy your dream car, but you don’t have enough cash to pay for it, you have only one option: settle for less—and no one likes that. Now, it doesn’t mean that inexpensive cars aren’t good, but there’s a significant difference between new, high-range vehicles and older ones in terms of functionality and performance. Expanding your price will allow you to buy a better and newer car—one that you want, one you deserve—not the one that you’ll get stuck with. So, when you’re short on
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Understanding the Difference Between Home Equity Line of Credit and Home Equity Loan

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  According to the statistics, the value of homeowner equity in the United States is approximately 18.72 trillion U.S. dollars in 2019. Many people buy residential property to build equity and long-term wealth creation. Some of them take advantage of that equity to raise more finance. A home equity line of credit (HELOC) and a home equity loan are two excellent ways to secure financing using your home equity. Let’s compare and contrast between both options to give you a better idea: Home equity line of credit A home equity line of credit, as the name, suggests is a line of credit that allows a borrower to obtain up to a specific amount of their home equity. HELOC comes with variable interest charges and requires to be repaid gradually over time.The borrower can secure finance during the draw period and only need to pay interest payments. The draw period, which is usually 10 to 20 years, is followed by a repayment period, where the borrower is liable to pay for princi
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Ways to Make Your Credit Card Work for You, Not Against You

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People tend to spend more when they use credit cards in place of physical cash. While credit cards can be used to rack up airline miles and points that can be used in place of cash over the long term, spending money is simply easier with credit cards.  Many people end up spending up to 100% more because using a credit card takes away the immediacy of the payment. There are many ways to ensure that you don’t let impulse buying get the best of you, and instead use credit cards responsibly without taking on too much debt. Pay off as much as you can Your credit card debt should not exceed 10% of your monthly income. Don’t just pay off the minimum amount every month. That will accumulate your debt uncontrollably.  The only way to avoid getting into a debt crisis and avoid paying interests on your purchases is to pay off the entire amount whenever you can. This could mean paying it off in full each month, or a few times a month, if you feel that would help you stay o
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