How to put smart debt on our side
Smart borrowing can help us do the things we’ve dreamed about. Like buying our first home or upgrading to a new ride. Yeah, borrowing can help us do some pretty awesome things. But we have to be smart about it. Let’s take a look at a few examples of smart borrowing and how it can help us move forward in our lives.
Probably the biggest loan we’ll have in our lifetime, a home loan gives us the power to buy that house we’ve always dreamed of. But there’s more to it. The value we build up in our home over the years can be used to our benefit, too. We may be able to tap into that value to help pay for renovations, college tuition and more.
This is a loan from the bank that could help us do things like make renovations to our home. It could be used to upgrade a bathroom, or maybe finally turn the backyard into that gigantic putting green we desperately need (just kidding, but no judgment here). Whatever the project, it’s smart to make sure the improvement could increase the value of our home when we decide to sell it. For a little extra know-how on paying for home improvements, read more here.
A car loan helps get us that transportation to get to and from work, run the errands, shuffle the kids to soccer practice and sleepovers, and more. Additionally, having a car loan shows lenders our ability to make consistent payments over an extended period. This can help us when it comes time to apply for other loans, like for a home.
Our car payment calculator can give you an idea of what your monthly payments will be like and help you budget for the future.
Smart borrowing can help us work toward that future we’ve dreamed about. For more information, check out our Dominating Debt ebook.