Incorporating the Use of Credit into Your Financial Plan Requires

question 95

Essay

Incorporating the use of credit into your financial plan requires understanding the correct use of different types of loans.Compare and contrast the positive and negative effects that credit cards and personal,home equity,and student loans may have on the success and failure of your financial plan.

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Definitions:

Cost-benefit Principle

This refers to the economic principle that actions or decisions should be pursued only if the benefits outweigh the costs.