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Basics Beginner: Things to Ask Yourself about Large Purchases

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1.
When considering major purchases, its always best to buy new products.
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False. Very often one can afford more bells and whistles by considering used products.
2.
The definition of "large purchase" is standard and accepted by everyone.
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False. The definition varies according to people, families, and businesses, often by their economic conditions.
3.
What is perhaps the best way to decide if a purchase is a major one?
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The best way to decide if a purchase is major is by considering either how long the product will be of value and/or how much the product costs, and/or if it is already part of your budget. Family budgets can often be compared to those of small businesses.
4.
A luxury item is typically a _______.
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Want. Luxury items are typically not necessities and are therefore wants.
5.
If you have destroyed your credit in the past, you should _______ making a major purchase on credit again.
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Sometimes consider. Provided that you pay it back according to the terms of the credit card, you can use a major purchase as a way to reestablish credit.