You have more than just the basics to get by, including a credit card, home equity line of credit and some basic mortgage insurance.
But it’s the debt that can make or break your financial security.
Below is a look at how to pay for everything from credit cards to mortgage insurance, plus some tips on how to handle credit card payments.
Debt You’ve probably heard about credit cards, which are issued by banks or credit unions, with interest rates ranging from 1 to 3%.
Your best bet is to get a credit or debit card, rather than paying off a mortgage or credit card balance.
If you do have a credit score, it should be good enough to qualify for a higher interest rate, said Chris L. Hwang, president and CEO of Lending Club.
“That’s where most people are going to find good credit,” he said.
“It’s where the good mortgages are.”
If you’ve never taken out a credit cards or a mortgage before, it’s a good idea to learn about the types of products you’ll be buying.
“The primary difference between credit cards and mortgages is that credit cards are more about making you feel good about your finances,” said Brian W. McQueary, a senior vice president and chief financial officer of National Association of Realtors.
“Credit cards are for buying things that you need.
It’s for paying down your debt.”
If the card you’re using isn’t approved for your situation, you may want to try out a different type of card.
“There’s a lot of credit cards out there that have different terms, and that could be good for your finances in the long run,” McQuearsy said.
The difference between a credit and a mortgage?
A credit card typically offers lower interest rates and is more flexible.
“Mortgage credit is a little more structured,” said John S. Rieder, a partner at law firm DLA Piper who specializes in consumer credit and mortgages.
“For a credit, you’re in a very tight window to pay back the principal.
But the longer you have to pay it off, the higher the interest rate is going to be.”
Mortgage insurance can be a bit more complicated.
For instance, it can be more expensive than a credit.
For a mortgage insurance policy, you need to pay monthly premiums on your mortgage and any interest you receive on the loan.
That means you need a lot more than a few hundred dollars to get your mortgage paid off.
For credit card loans, you might be able to get the interest rates down by paying off the balance within six months.
“We’re seeing a lot fewer and fewer people with credit cards with high interest rates,” said Michael J. Hirsch, a professor of financial services at the University of Michigan.
“And a lot less people have credit cards that offer higher interest rates.”
He also pointed out that most mortgages are paid off over time.
That’s because the interest paid over time, called your “purchase price,” is the difference between what you pay and the amount you’re actually paying off.
So a monthly payment of $100 is equivalent to $60 in interest.
Mortgage insurance isn’t always available.
Many credit cards can be waived if you don’t have a pre-existing condition.
For example, you could qualify for the lower rates if you’re uninsured.
But if you’ve been paying your mortgage on time, it might not be worth it, Hirsch said.
For more on this topic, see: How to get started with debt.
Debt and Credit cards for people with disabilities The majority of people with a disability have the ability to qualify to borrow from a bank.
But some people with physical disabilities have a harder time.
“Some people can’t qualify for disability credit cards,” Hirsch noted.
For some people, a credit may be able help them get their finances in order.
If that’s the case, it may be better to take out a mortgage instead of a credit to help cover the cost.
The amount of money you can borrow depends on your disability and the type of mortgage you choose.
For those with intellectual disabilities, for example, it could be a little better to get an equity loan instead of an equity mortgage.
“I think credit cards for those with disabilities are the way to go,” said David B. Jones, a principal at Jones & Co., who specializes on consumer credit.
“If they’re the first thing that comes to your mind, you’ll find a credit that’s good.”
You might want to make sure that the card that you’re borrowing is approved for you.
It can help to have an attorney review the card and see if it’s approved for the person with the disability, Jones said.
In general, you can find out if a credit is approved or not by asking your credit card company or bank for an update.
For the most part, a good card is one that you’ll use frequently.