Understanding Hire Purchase – Part 2

Understanding Hire Purchase – Part 2

Hire Purchase (HP) is likely the most common way household items are purchased and financed and is sometimes regarded as an easy way for persons of lesser means to afford certain necessities (or luxuries). But HP transactions are not straightforward. For clarity, we are not suggesting this is a reason to avoid them. On the contrary, our objective is to identify the points you should be aware of, so you have no cause for later

Understanding Hire Purchase – Part 1

Understanding Hire Purchase – Part 1

Hire Purchase (HP) transactions take place everyday for various consumer goods such as furniture, appliances, televisions, and even cars. Several retailers offer these items for sale and tempt you by offering you to “buy on terms”, or put another way, pay for the item with instalments over an agreed period of time (usually up to three years). It sounds pretty straightforward: bring a job letter, payslip, utility bill (or some variation of these requirements); sign

APR – The True Cost of a Loan

APR – The True Cost of a Loan

We all know the interest rate on a loan is the cost to borrow money. Although at CariDollarsAndSense we believe Financial Freedom is achieved more rapidly if you avoid most debt, if you must borrow, then try to get the lowest interest rate possible. Unfortunately, determining the lowest rate is often not straightforward. The purpose of this post is to help you understand the problems involved, so you can keep more of your money (pay less interest).

Understanding Credit Card Debt

Understanding Credit Card Debt

In the first part of this post, Joys and Woes of Credit Cards, we identified some of the benefits and dangers of these little pieces of plastic, but we deferred discussing three “dangers” to this post: They are the most expensive form of credit Interest calculations are not easily followed The illusion of minimum payments  Before beginning, we’d like to remind you that we genuinely believe credit cards are an important financial innovation. They just

Joys and Woes of Credit Cards

Joys and Woes of Credit Cards

In an earlier post directed to Young Earners, we described a credit card as a little piece of plastic that is a powerful financial product, but which appears deceptively simple. They are ubiquitous; and we love them; and we hate them. Improperly used, they can break, no, decimate your finances. In this two-part post, we discuss the good and bad things about credit cards, and we hope by the end, you’ll understand how to avoid

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