Credit a wonderful resource, if used responsibly
Glenn Rambler in theLebanon Daily News reports:
Credit means someone is willing to loan you money known as principal in exchange for your promise to pay it back, usually with interest. Interest is the amount you pay to use someone else’s money. The higher the interest rate, the greater the costs of using credit. In fact, the biggest cost of using credit is the interest rate, so it pays to shop around.
The key is not to avoid credit, but to use it wisely. For example, using credit to purchase a home now, rather than trying to save up the whole purchase price, makes financial sense. The home provides a place to live that will perhaps increase in value, and the interest from the mortgage offers a tax deduction.
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