Are Loans And Credit Cards Good To Cover College Expenses

Host: Should I take out a loan, or get a credit card to help me pay for expenses?
Brad Barnett: Well, the Loan versus credit card issue, I mean, my advice is if you can avoid both of them, then do. Make a good budget and hopefully you won t have to take out any kind of debt. But if it comes down to one or the other, loan debt, student loan debt, it's typically considered better debt than credit cards. It's factored better in on the credit reports, there maybe some provisions for you to actually write off some of the interest on student loans, when you pay your taxes and there are also caps on what the interest rate can be as well as repayment affirming cancellation provisions. With credit cards that s not the case and it's so easy for students to get in trouble with credit cards. So, if comes down to one or the other, students loans would certainly more advantageous than having a credit card.



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