Hello! My name is Tim, here to talk to you a little bit about using credit wisely. Credit comes in all kinds of forms; from a loan from a friend or family to a mortgage, buying a new home, putting your kids to college, putting yourself to college. Using credit wisely is important. It's easy to get in too much depth in today's age with all of credit card offers, with all of the insurances you have to pay, with all of the things that people want to buy, the conveniences and goods. So using credit wisely is important.
One of the most formative pieces of that is making payments over the useful life of whatever you are buying. If you are buying a car, you don't want to pay it off over 20 years; you want to pay it off over five years, six years maybe because that's about how long a car lasts. If you buy a home then that one you can stretch out 20 years, 30 years and that's why mortgage has become available in that. But if you are going on a trip or you are doing something short term, buying a skate board, buying something convenient for yourself, try to pay that off either in a month, two months certainly within three or four months.
Some credit cards come in with insurances, some come with travel insurance or rental car insurance and that's all very helpful. Using a credit card can be helpful for that but again, going on a trip, make sure you can pay for that within a reasonable period of time before you want to go on another trip. Extending it too long really cost you a lot more money in the long run. So, use credit wisely and it will benefit you. Thanks.
Transcription by:
Scribe4you Transcription Services