Debt seems scary... if I were to fall into debt, how can I overcome it?
Evaluate the contract carefully!1. Are there fees? 2. What is the annual percentage interest rate (APR)?3. What are the consequences of a missed or late payment?4. What happens if the loan is not paid back in full?
Remember: the amount you borrow should be less than 20% of your annual net income and the monthly payment should be less than 10% of your monthly net income!
In order to use my credit responsibly I must pay the monthly payments on time and consider future implications to paying back the amount borrowed.
Exactly! Living paycheck to paycheck is exhausting and takes a great toll on your financial well being. If you fall behind on late payments, it could impact your credit score, increase debt, and some lenders may take legal action.