before you buy a car
If You're Short on Money
Purchasing a car is just the first expense that comes with owning one. You also will need to pay for gas, maintenance, insurance, registration, and possibly parking or tolls. When you check your monthly budget, if you don't have enough left to cover these costs, what should you do?
- Brainstorm ways to increase your income and reduce your expenses.
- Take out a payday loan, so you'll have more money available.
- Charge your car costs on your credit card and pay them off over time.
"A" is correct. Using a loan or credit to pay for ongoing car expenses may land you in serious debt. To increase income, get a part-time job, work overtime, or check your payroll exemptions to see if you're overpaying Uncle Sam. To reduce expenses, find ways to economize on food, utilities, and other costs.