Is credit a privilege or a right? Frequently we may believe that lenders are obligated to provide us a loan. In reality, access to credit, particularly at reasonable terms and interest rates, is earned by demonstrating that we have managed our money and credit responsibly in the past.
Therefore, in order to increase the confidence of lenders, and to improve our chances of obtaining credit at reasonable terms, we need to demonstrate our financial stability and security by possessing a stable income and the ability and willingness to repay any and all borrowed funds in a timely fashion.
Debt is when you owe, usually money, for the purchase of goods or services without immediately paying for them. You owe a debt when you use credit instead of cash to make these purchases.
Your promise to pay the debt is usually stated in a contract that is enforceable in court.
Remember: Debt spends your future income now.
Therefore, in order to increase the confidence of lenders, and to improve our chances of obtaining credit at reasonable terms, we need to demonstrate our financial stability and security by possessing a stable income and the ability and willingness to repay any and all borrowed funds in a timely fashion.
Debt is when you owe, usually money, for the purchase of goods or services without immediately paying for them. You owe a debt when you use credit instead of cash to make these purchases.
Your promise to pay the debt is usually stated in a contract that is enforceable in court.
Remember: Debt spends your future income now.
