Before taking on additional debt, we should all ask ourselves the following question listed below:
- Do I really need this item right now or can I wait?
- What is the true (total) cost of using credit?
- How much is the monthly payment and when is it due?
- How many months will I have to make this payment?
- Can I afford the monthly payments?
- What will happen if I don’t make the payments on time?
Remember that everything we do relating to credit will have one of two consequences:
- Get us closer to achieving our long-term goals by maintain good credit.
- Create additional barriers and increased cost.
