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Yakk · 03-01-2004, 07:43 PM

A line-of-credit/loan, even unsecured, is probably a better deal than a credit card.

Your car loan is probably a better rate than any unsecured loan you can get: at least, I assume your car loan is (at least partially) secured against your car. While car's depreciate fast, it is better than unsecured debt from the bank's perspective.

But, get the hell out of credit card debt if there is any way you can possibly do it.

Note: The above advice is based off my knowledge of Canadian credit. I do know that American credit works differently, I just do not know how exactly. . .

But, with Credit Card debt, you are paying both for the convinience of the debt and for the lack of security on it.

(security on a debt means that if you default/go bankrupt, the people lending you the money get first dibs on part of or all the thing you secure your debt against. Morgages are a classic example of secured debt (against the value of the home.))

03-01-2004, 07:43 PM	#4 (permalink)
Yakk Wehret Den Anfängen! Location: Ontario, Canada	A line-of-credit/loan, even unsecured, is probably a better deal than a credit card. Your car loan is probably a better rate than any unsecured loan you can get: at least, I assume your car loan is (at least partially) secured against your car. While car's depreciate fast, it is better than unsecured debt from the bank's perspective. But, get the hell out of credit card debt if there is any way you can possibly do it. Note: The above advice is based off my knowledge of Canadian credit. I do know that American credit works differently, I just do not know how exactly. . . But, with Credit Card debt, you are paying both for the convinience of the debt and for the lack of security on it. (security on a debt means that if you default/go bankrupt, the people lending you the money get first dibs on part of or all the thing you secure your debt against. Morgages are a classic example of secured debt (against the value of the home.)) __________________ Last edited by JHVH : 10-29-4004 BC at 09:00 PM. Reason: Time for a rest.