Saving Money vs Getting a Loan and/or Credit Card

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jyy

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I think loans/credit cards can be a good thing. However, though, they can be used carelessly and lead to debt. However, though, on the flip side, it can be difficult to save money these days - especially if someone's income is simply too low. I mean, it would take forever to save money and that can be annoying.
 

Joshua Farrell

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Not sure entirely on the loan part, as I have yet to get myself a loan. But with most banks, the credit lines have two options to get them. The first is the generic application for it, which may or may not get the amount you want in the line (based on if you have previous credit history, and your income stability), and the second way to get the line of credit, is to save up as much as you can, and use that as the collateral amount, for the credit line (which gives you credit to that amount). I do know that for those who have bad or no credit, saving up for the second option on the credit line, is a bit easier to aim for, as you are pretty much borrowing against the savings that you used for the credit line.
 
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jyy

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I think it's silly to think people can save up money for college, homes, cars. Well, I'm sure some can, but I don't think people should feel guilty for wanting loans. Well, they can be dealt with responsibly.
 

Lämmchen

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We have always paid off our credit cards because to carry a balance results in a high interest to be paid and that makes the item cost more than you probably expected. By paying off the credit cards every month we have a great credit score and that's important if you ever want to get a loan for house or vehicle.

If you find that you really need an item, try to save up for it instead of relying on carrying a balance each month on a credit card. You should still pay for it with a credit card because a lot of cards give rewards for using them and that makes it worth it even more...but pay it off as soon as you can.
 

Alexander

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Saving money is the best option in comparison to borrowing money. Budgeting is the key to success. My financial advice is 50% on needs, 30% on wants, and 20% for an emergency savings account. If you earn $1,000 monthly, putting aside 200$ each month for unexpected bills will prevent the need for credit. If you have a loan or credit card, make sure you pay off the balance on time to avoid additional charges.
 

jyy

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Saving money is the best option in comparison to borrowing money. Budgeting is the key to success. My financial advice is 50% on needs, 30% on wants, and 20% for an emergency savings account. If you earn $1,000 monthly, putting aside 200$ each month for unexpected bills will prevent the need for credit. If you have a loan or credit card, make sure you pay off the balance on time to avoid additional charges.

Yeah, I don't think people try hard enough with saving. Anyway, saving is a sure thing compared to investing - even though the thrill of chance can make investing fun. Well, the guru Robert Kiyosaki said "savers were losers", but that's coming from someone who loves investing.
 

Empire

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I rather save money than buying items on a loan. Outright is the option so that you own something fully and do not have to worry about paying it back. It's how I like it and how it goes. But comes down to your funds and how much you willing to get the items if you had no other choice.

Amazon offers to buy now and pay later option or payment each month on selected items, that can help however you stuck paying it off for the next five months or so.

For most of my life I never had loans or payment subs, Just brought items outright.
 
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Joshua Farrell

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I have known some companies willing to do a payment option, where they would hold on to the item, until you pay off the price of it in full.
 

George

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Taking a loon/Credit cards would be the bad idea, Since only rich peoples can do this by using their properties as collateral. Its hard for poor people to take loan they have nothing to show to the banks. Many organization realize they can restore the cash from rich people and there's no postponement of refunding.
 
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vest1992

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Neither of them, it is the mindset that is involved here, o i have x amount of cash/money I am spending that here or there, I need more. When you change your beliefs and heal your blockages you will manage to attract abundance in your life speaking from experience.
 

Vladv26

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Taking a loan from a bank could be an easier options because then you are forced to pay the money back. I say that because for some people it is hard to save money for a long time without spending it
 
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vest1992

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Taking a loan from a bank could be an easier options because then you are forced to pay the money back. I say that because for some people it is hard to save money for a long time without spending it
Don t forget taking a loan makes you pay back more on the long run, it s not worth it at all.
 

Vladv26

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Don t forget taking a loan makes you pay back more on the long run, it s not worth it at all.
Yeah, i know and i personally never took and don't plan on taking loans from banks. But there are so many people out there that take loans to buy a house or maybe a car, and then they end up paying 10-20 years for that
 

Claraviolet

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It's better to save money first for getting something. Or if that's not possible at all, then they should look for a loan with low interest rates. Otherwise they would end up paying more and more for the interest alone.

As for as I know, a home loan is a better option rather than a credit card.
In the end, you will have a house of your own and you can also pay the money back slowly. I don't recommend a credit card. It's like borrowing money from a bank too.
 

mikenova22

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getting loans can be lucrative, for example astudent loan, if you would go a 5 year education adn you take student loan with 0.15% interest, you can easily make that back with the stock market.

but you cant spend any of the money.
 

Kris_Cooper

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Of course saving money would be wiser than taking money for loan , but life is unpredictable , you never know what can happen when. In case of emergency there should be a backup at least , and if there's no backup then the option of loan is available.
 

Abigael

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I prefer saving money for my later use but it is not so easy to save given the many expenses and low eaenings. Therefore, I do take loans sometimes. But I only make sure that when taking it, I already have a plan on how to pay it back. I have been in a situation in the past where I could not pay a loan and I don't want to go back there.
 

Niftyyem

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Saving up to meet or fulfil a need is a way better alternative to taking loans. Loans have to be serviced with interest and it could collapse the project you took it out for if not careful.
 

Ureka

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This are personal questions, as it depends on alot of situation and scenario, but I will rather take a loan, use it wisely and pay back.
The richest people in the world totay always do it
 
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