Part VIII addresses loans and mortgages.$$Loans and$$mortgages$$can be hazardous to any plan for Financial Independence but it can also be a valuable tool, if used correctly, in creating and in acquiring$$an excellent credit score, assets and possible stream of income. What are the benefits and risks of owning a home and carrying a mortgage? What are benefits and risks in carrying any long term $($over $1$ year$)$loan$?$ Why should you refrain from spending money today on earnings that are created tomorrow?

Research shows that we are more likely to spend $2$x as much with a credit card than with purchasing with cash. Is this the same with a loan...do we spend more? Why is it important to recognize our own spending habits if trying to save? Do consumer loans operate the same way as credit cards? How are they different? What type of loans should you stay away from? Remember to continue with$$Step $1.$