A Plan for your Financing

COMPONENT THREE

Financing

To finance something is to pay a portion of that item, usually like a house or car, and you finance (borrow) money to pay the rest. Long term financing is usually available at lower cost, but if you do not pay the amount you borrowed to buy something, they may take the item you bought instead. Every time you borrow money, you have a payment schedule. Make sure you include that in your monthly budget.
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