Car loans are often a financial trap, as they involve borrowing money for something that depreciates in value. If you can't pay off your car in 18 to 24 months or if your loan exceeds half your annual income, it may be time to reconsider your vehicle. Mortgages also weigh heavily on finances, accounting for a significant portion of American debt, so it's crucial to approach home buying wisely and ensure your mortgage fits within your budget.
