Introduction

Many people choose between loans and credit cards—but which is better?

Key Differences

• Loans: fixed payments
• Credit cards: variable interest

Example

Credit cards often have higher interest rates.

Try This Tool

Conclusion

Loans are usually better for large, planned expenses.

Introduction

Taking a loan without knowing what you can afford is one of the biggest financial mistakes.

What Determines Loan Affordability

• Income
• Expenses
• Interest rate
• Loan term

Example

A $20,000 loan at 6% over 5 years = manageable monthly payments.

Try This Tool

Tips

• Keep payments under 30% of income
• Avoid long-term high-interest loans

Conclusion

Always calculate before borrowing to avoid financial stress.