Page 27 - MCUL: Contact Magazine - Q4 2019

3 A MORTGAGE IS ALWAYS BETTER THAN RENTING.

Know the market where you’re considering buying and living.
Imagine what your needs will be in the near future. Will
you still want to live where you are now? Could work or
BAD ADVICE A mortgage can be a smart investment in a home and in BETTER ADVICE life take you elsewhere? Know your budget; don’t buy more
real estate — at the right time, in the right place and for
than you can afford. With all of this in mind, renting at a
the right price. Just because it’s a loan involving real estate
rate within your budget might be the best move for you right
doesn’t mean it’s a for-sure bet for you at this moment.
now. Renting means your money isn’t as tied up, you have
more options should your needs change and you can save
for other things in life (assuming your rent would be lower
than a mortgage payment).

4 TAKE ON GOOD DEBT, QUICK!

BAD ADVICE The idea of good versus bad debt is shaky at best. More BETTER ADVICE There are occasionally good reasons to borrow money but
accurately, the thing you are investing in might be good
as soon as you shoulder the burden of debt, it can weigh
you down. Instead, research your investments, understand
or bad. Either way, carrying debt inhibits you from other
if debt is necessary to obtain your goal and proceed with
investments, such as retirement, better health insurance,
continuing education, etc.
caution. If you can, budget, save and pay with cash.

5 CONSOLIDATE CREDIT CARD DEBT BY ROLLING IT INTO REFINANCING YOUR MORTGAGE.

There are several problems with this apparent “cure all” for Build a budget and work to pay off your credit card debt
BAD ADVICE open to be used again and to accumulate debt again. Two, BETTER ADVICE on your own. Negotiate a payment plan or a lower interest
runaway credit card debt. One, it keeps those credit cards
rate with the credit card companies. This all helps engender
it doesn’t teach good habits of self-control and budgeting.
self-restraint, teaches you about spending habits and
Three, it can mean you’ll pay much, much more in interest
throughout the life of the mortgage. makes you more financially healthy overall.

BONUS ADVICE

Don’t let fees scare you from establishing a bank account. By being “unbanked,” you cut yourself off from
many helpful financial tools. Investigate fee-free or better banking options for you, such as using a credit
union. Your deposits are insured, your money stays in the community and you’ll have access to financial
advisors, loans, interest-earning savings accounts and more.

FOURTH QUARTER 2019 I CONTACT 27

12/18/19 1:50 PM
143171_Contact_Q4_19_F4.indd 27
143171_Contact_Q4_19_F4.indd 27 12/18/19 1:50 PM