Borrowed Money

When borrowing money Depending if it is a loan from a friend they probably wont charge you interest. If its a loan shark your paying the money over time but with interest on their percentage.


Do not get a loan to pay off any credit card debt. Personally i wouldn't even get a credit card (avoid if you can) try a debt card instead

Do's Don'ts

Do find best interest rate

Do read fine print

Do pay on time

Don't borrow exceedingly

Don't borrow more than you can afford

5 C's of Credit






Simple Interest

Money you can earn by investing money from your beginning principal and some interest. An initial principal is added which lets your investment grow.


Personally I wouldn't bother or even dream about having a credit card. But you see there is something you do have to pay on margin. For example, A house mortgage is a huge purchase you will most likely make. So you'll have to get a loan which isn't bad.You just want to make sure you getting the best deal out of it and it is comfortable for your income and interest. Possibly the only time I would recommend a credit card is for an emergency.

20-10 rule

Understanding how much credit you can afford because, credit cards are pretty much loans. And you shouldn't borrow more than 20% of your annual net income.

How to calculate: Lets say you earn $3000 a month after taxes 12 * $3000 = $36,000 So you calculate 20% of your annual net income to see your "safe debt load" $36,000 * 20% =7,200

Now, this means you shouldn't have more $7,200 of "debt outstanding"

and this does not include house mortgage but other payments should be included such as: car payments, students loans and credit card(s) if applied.

Frauds and spotting scams

Scammers want to distract you from your time by trying to get you not to check if their check, money order, or U.S. postal order is legit. they do this or make you