Need and Opportunity

A Certified Liability Advisor is going to look at all your liabilities as part of a broad solution. There are two reasons to borrow: need and opportunity.

Need - I want something now that I can't pay cash for - therefore I 'need' to borrow.

Opportunity - I want something now that I can pay cash for - but I 'choose' to borrow based on an opportunity.

Having a plan for how your borrow and you repay what you borrow is key. Most lenders focus on borrowing, not repaying. Working with a CLA ensures you minimize your cost of borrowing over time.

Either way, as you can see below, the mortgage is the largest borrowing class, but all borrowing has been increasing. Housing expenses are the largest single expense you'll likely have in your lifetime.