Borrowing factors to consider and comparing interest rate on loan offering

The video explores borrowing money, assessing financial needs, and comparing loan interest rates. It covers factors affecting loan eligibility, such as income, expenses, credit score, and DTI. Strategies to avoid debt traps include budgeting, minimizing credit card use, and debt consolidation. The video also discusses comparing interest rates, considering fixed vs variable rates, APR, and loan terms. Tips for loan comparison and seeking financial advice are provided.

What factors should you consider before borrowing money?

Explain the concept of a debt trap and how it can be avoided.

What is the difference between fixed and variable interest rates?

Describe the importance of the annual percentage rate (APR) in borrowing.

How does your credit score affect loan interest rates?

What are the advantages and disadvantages of shorter loan terms?

What steps can you take to compare interest rates effectively?