Good debt vs bad debt

Good debt vs bad debt - borrowwithyourcar.com

We all have debts each and every month. But there are debts that work towards a healthy financial future, and debts that hold you back and erode your credit rating.

Let’s explore good debt vs bad debt.

Bad Debt.
This would be something like a credit card balance that keeps rolling over month after month. You may be just covering the minimum balance. Even as you hit click on your online payment or drop that cheque in the mail, over the long run, this type of debt is frowned upon by the credit rating powers that be. By not paying off those credit card balances, it tells potential lenders you are maxed out on debt, and not capable of handling further debt.

Buying what you need vs what you want.
Borrowing to buy a new piece of electronics, or cell phone is definitely debt that needs to be questioned. You should always ask yourself, “Do I really need this? How will this purchase improve my financial situation?”

Good Debt.
You’re starting a new job. It’s a job with great potential but unfortunately it’s not convenient to transit and arriving on time each day to work. You decide to borrow to buy a car. This is good debt. You’re investing in your future. Now, however, if you buy a car that is too expensive for your budget, you’ve shifted back into bad debt.

Investing in your Future.
Real Estate. Buying a home that matches your budget and doesn’t make you “house poor” is good debt. You have looked at your city, and purchased in an area that is on the rise. By and large real estate is almost always a good investment, but you need to not buy over your head. A property that is not properly maintained will end up becoming much more of a financial drain should you eventually wish to resell or rent that property out. But, just with the example of buying a car you can afford, buying a home within your budget is definitely smart investing and falls under the category of Good Debt.

Borrowing to purchase a new set of clothes for job interviews is an example of good debt and investing in your future. Designer labels or clothes that are priced way beyond your budget aren’t necessary and the return on that investment is questionable.

Education.
Borrowing to take classes which would increase the likelihood of being considered for a job is definitely another example of forward thinking good debt. But have a plan in place. Choose classes that will make you a more sought after candidate; classes that all weave together as a program that says you have an area of expertise which can be used in the marketplace.

Good debt is common sense debt.
We all know, deep down, whether a purchase is frivolous or a logical place to spend your money. Anytime you can borrow at a lower interest rate to pay off higher rate debt, it’s considered good debt. Any purchase requiring debt that can help improve your financial situation should definitely be considered good debt.

Often a borrowwithyourcar.com loan will free up money that can be used to make a good debt purchase. The equity you have in your car or truck could pave the way to a brighter future.

If you are looking to get approved for a loan with bad credit, Prudent Financial can help. We provide funding to those in consumer proposals and even undischarged bankrupts.
Call about a BorrowWithYourCar loan or a consultation on your debt situation today at 1-888-852-7647.

How a Driver’s Training Course Saves Your Money on Car Insurance

A Driver’s Training Course can Save your Money on Car Insurance

Car insurance can be expensive, especially for new drivers. So it makes sense that many people look for ways to reduce these costs. One way that many consider is enrolling in a driver’s training course.

Taking a driver’s training course can help you reduce the costs of your car insurance. Here’s how.

Image courtesy of stockimages at FreeDigitalPhotos.net

Image courtesy of stockimages at FreeDigitalPhotos.net

The Advantages of a Driver’s Training Course

Insurance companies charge higher rates to drivers that they feel are at a greater risk of having a collision or making a claim. They charge lower rates to drivers that have lower risk. When a young person takes a driver’s training course, insurance companies see this person as someone who is more qualified and more likely to drive safely. For this reason, they often charge a reduced rate for insurance.

If you have taken a driver’s training course in the last three years, your insurance rates will likely be lower. How much lower? That depends on a number of factors including where you live, the type of car you drive and which insurance company you choose. However, in almost every situation a person will pay less for insurance if they have received driver’s training, if all other factors remain the same.

Approved Driver’s Training Courses

It’s very important that you receive your driver’s training from an approved school. The Ministry of Transportation in each province approves only some schools. Insurance companies generally only offer discounted rates to people who have completed training at one of these approved schools.

When a driver has completed an approved training course, insurance companies see this individual as a person who is focused on being a safe and educated driver. This lessens the risk to the insurance company and reduces the rate that the driver pays.

If you’re looking to get driver’s training in hopes of reducing your insurance rate, it’s important that you choose a school that appears on this list of approved schools. You can find these lists on the website of your province’s Ministry of Transportation. For drivers in Ontario, the list can be found here.

Driver’s training isn’t just about learning what you need to pass your road test. Most driver’s training courses include both in-class and in-car training and are geared towards providing you with the attitudes and skills needed to ensure that drivers are safe and confident while driving. Insurance companies recognize this and offer lower car insurance rates to drivers who have taken such a course.

 

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How to Save Money when your Partner is a Big Spender

Dealing with a Spender Spouse

Dealing with a spouse who spends a lot of money can be tough. Financial issues are one of the major reasons that couples fight. Here are a few tips.

How to Save Money when your Partner is a Big Spender

Having a spender in the family brings financial stress to everyone. It can be very difficult to budget properly or save any money when one spouse is a big spender. But that’s not the only downside to having a spender as a partner.

One of the main reasons for divorce or separation is financial unhappiness and financial stress within the family.

Financial issues are also one of the main things that couples fight about. However, having a partner who is a spender doesn’t mean that your relationship is doomed. Here are a few tips for living with a spender. Spender

First of all, it’s important to remember that we all have different ideas when it comes to saving and spending.

Just because your spouse or partner spends more money than you do, that doesn’t necessarily mean that he or she is overspending.

However, if you’re not able to save any money for emergencies or retirement or if your partner’s spending is putting you into debt, you’ll need to do something.

You’ll also need to speak to your partner if his or her spending is upsetting you. Suffering in silence is a bad idea.

One of the first things that you can do is sit down with your partner and discuss your financial situation. Let him or her know what your financial goals are.

For example, if you want to put a certain amount of money aside every month for retirement or if you are saving up for a vacation, remind your partner of that goal.

The two of you can then work out ways to make changes so that you can meet the goal.

If you’re in debt, work out a plan for how you will pay your debt down. In many cases, this will involve spending less money.

Then, If you’re going to spend less money, you’ll need to know which of your expenses are necessary and which are not.

List all of the things that you absolutely need to spend money on (rent, mortgage, car payments, debt repayment, work clothing, etc.) and then list all of your “wants” (entertainment, extra clothing, electronics, jewellery, etc.)

You can then come up with a plan to reduce spending on wants.

The best way to do this is to set a monthly budget and stick to it. You may need to spend some time working with your partner to determine what “wants” can be cut and which ones should remain in the budget.

Involving your partner in the budgeting process and the bill paying process can make him or her understand the consequences of overspending. Simply saying “Don’t buy this, we don’t have the money” can sound like an attack, especially if your partner isn’t aware of the details of your financial situation.

Once he or she becomes more involved in managing the family finances, it will be easier for him or her to see why certain purchases can’t be made.

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