Major purchases such as cars, houses, and paying for college typically require borrowing money for long periods of time. Long-term financing is usually available at a lower cost to the borrower than can be found with credit cards. Some lenders will loan you more money than you should borrow. Remember that every time you borrow money, you have a payment schedule that requires you to make timely payments.
Personal Financial Literacy – Second Edition – Madura, Casey, Roberts – Pearson