- People Aren't Saving Enough
- Racking Up Debt
- What You Will Learn in this Section
- Should I Borrow Money?
- Total Cost of Borrowing
- Think Before You Borrow–Key Considerations
- Where Should I Borrow?
Although credit can be harder to come by these days, it is still extremely easy to get into debt. Furniture companies and car dealers still offer deals that involve little or no down payment and let you pay off the debt over long periods. Tempting credit card offers still appear regularly in your mailbox.
In some ways, easy credit is good. If you're starting out or starting over, credit can put a roof over your head and bread on the table and give you time to get on your feet. And, for people who are very disciplined, credit can be a way of keeping track of expenses. Some people put almost every penny they spend on credit cards, so they will have an itemized list each month of exactly where their money went.
But many people aren't that disciplined. For them, credit is a way of having things now instead of later. That's fine if there's enough money later to pay for the things. But if there isn't, that means mounting bills, credit card balances, and big-time debt.
How much debt is too much? Take the following quiz to see if debt is a problem for you.
- Is your savings cushion inadequate or nonexistent?
- Are you using credit cards for items you used to buy with cash?
- Are you at or nearing the limit on your credit cards?
- Are you unsure about how much you owe?
- Is an increasing percentage of your monthly income going to pay off debts?
- Are you able to make only the minimum payments on your credit cards?
- If you lost your job, would you be in immediate financial difficulty?
Copyright National Foundation for Consumer Credit
If you answered yes to two or more of these questions, you need to take a long, hard look at your finances.
Securities and advisory services are offered through LPL Financial (LPL), a registered investment advisor and broker-dealer (member FINRA/SIPC). Insurance products are offered through LPL or its licensed affiliates. Franklin Mint Federal Credit Union and Mint Wealth Advisors are not registered as a broker-dealer or investment advisor. Registered representatives of LPL offer products and services using Mint Wealth Advisors, and may also be employees of Franklin Mint Federal Credit Union. These products and services are being offered through LPL or its affiliates, which are separate entities from, and not affiliates of, Franklin Mint Federal Credit Union or Mint Wealth Advisors. Securities and insurance offered through LPL or its affiliates are:
| Not NCUA Insuredor Any Other Government Agency | No Credit Union Guarantee | Not Credit Union Deposits | May Lose Value |
The LPL Financial Registered Representatives associated with this site may only discuss and/or transact securities business with residents of the following states: NJ, PA, NY, DE, AZ, MI, FL, MD, TX, VA, GA, NC.
Financial Learning Center content created by TrueBridge, Inc. The information provided is based upon sources and data believed to be accurate and reliable. The content contained herein is intended for information and illustrative purposes only, should not in any way be construed as a personal recommendation, and should be used in conjunction with individual professional advice.
