Financial Basics

It is very important to understand Consumer debt and how you can be financially secure. The common forms of consumer debt are credit cards and payday loans along with some other forms. They often have higher interest rates than your typical secured loans like car loans and mortgages. Why do they have higher rates? Well they are not secured against a home or a car and there is much more risk for the lender—so they charge higher rates to mitigate the risk.

It is very important to keep these types of debts under control as they can add up over time and become a burden to you and your family. PLEASE try and take these loans out for the short-term and for emergencies only.

Without these debts and to have your overall debt low, you can become financially secure and spend your money on things that your family needs or wants, i.e. Vacations, cars, homes, etc.

If for any reason your debt gets to become a problem, there are resources that can help. Consumer Credit Counseling can be of great help. They can educate consumers on avoiding incurring debt and how they can pay them off. Please look them up in your area.