Borrow

Don't major in debt--understand the true costs of borrowing money

CONTROLLING HOW MUCH YOU BORROW AND MANAGING YOUR DEBT IS SO IMPORTANT FOR YOUR FUTURE.

Sometimes it’s necessary to borrow for major purchases like your education, a car, or even for unexpected emergencies.  But for impulse purchases or things you want, it’s better to save up rather than borrow.


STUDENT LOANS

  • Federal student loans are real loans, just like car loans or mortgages. You must repay a student loan even if your financial circumstances become difficult. Your student loans cannot be canceled because you didn’t get the education or job you expected, or because you didn’t complete your education. 

  • You have a choice of several repayment plans that are designed to meet your needs. 

CREDIT CARDS

  • People under the age of 21 now must have a co-signer or show proof of independent income if they want to get approved for a card in their own name.

  • In the meantime, you can build your credit by “piggybacking” on your parent’s card as an authorized user.

  • Using your credit card for small purchases and paying off the balance each month can help build your credit score.


Play Video: Using credit cards wisely

Play Video: Reducing your credit card debt