Why Might You Want a Line of Credit?

Line of CreditA line of credit is a little like a mix of a credit card and a bank account. Like a credit card, a line of credit is a type of unsecured loan. You have a credit limit (just as with a credit card) that you can borrow against. Just like a bank account, however, you can withdraw money from your line of credit at an ATM. You can even write a check, usually, for your line of credit. The nice advantage is that lines of credit usually have more attractive interest rates than credit cards, especially if you get a secured line of credit.

Many people with uncertain incomes like to have a line of credit. If you are self-employed or work on commission, for example, your monthly wage might fluctuate a lot. A line of credit gives you cash when you need it and when you get a more prosperous month, you can pay off your debt amount again. Many people also like to have a line of credit when they know they will face upcoming big expenses but aren’t sure how much they will eventually spend. For example, if you are working your way through school and will need some money but don’t want student loans, a combination of work, scholarships, and a line of credit might help. If you are completing renovations to your home, a line of credit can be an affordable way to borrow money for your project.…

Why people put off investing (like they put off exercise) and what you can do about it

Many people say they’ll exercise or start eating healthy “tomorrow” and for far too many, tomorrow never arrives. It’s easy to procrastinate when it comes to doing the things you know you need to do, but not doing basic things such as exercising – or taking care of your finances – can really catch up with you. Here’s how to break the procrastination habit when it comes to investing.

Take one small step. Trying to get everything right is one reason most of us put off investing. Today, instead of trying to get it all right, put a few dollars in an investment account or set up an appointment with someone at your bank to talk about investing.

Find someone who will make you accountable. A professional at your bank will encourage you to invest, as will an investor who teaches a class to new investors. These can be great motivators. Develop a written plan with a deadline. Rather than thinking of investing as something you will do “someday” develop a step by step guide – how much will you invest and when? What steps do you need to take before then? Will you invest in CDs, real estate, stocks, or something else? Writing it down makes it seem more manageable and real, so you are more likely to follow through.…