Good Debt
April 4, 2009
WHAT’S I think all debt is bad because debt just can bring a problems for us. So it’s imposible there is good debt. Debt is not always a bad thing because there is instances where the leveraging power of loan actually helps put in a better overall financial position.
Good debt includes anything we need but can’t afford to pay for up front without wiping out cash this means that this debt is make sense and you just take yur credit which you can afford monthly payments. Good debt here incudes buying a home, paying for education and financing car. Why this three things is a good debt because we need it in our lives and we can pay installment.
OK let me explain one by one :
a) buying a home
This is a good debt because we can’t buy a home with cash and we have some dificullty so we pay it installment. So installment here is a good credit before we use it with consider our income.
b) paying for education
This is important for their future and we consider it when we have child so it means our children have plenty of financial sources to draw on for education, but no one is going to give us a scholarship for your retirement. This means that the best bet is for saving what we can do for our children education withut sacrefise our financial health.
c) financing car
This is a good debt because we can’t buy a car with cash and we have some dificullty so we pay it installment. So installment here is a good credit before we use it with consider our income. Because we need a card for our transportation.
Sometimes the decision to debt is not dependent on how much money you have, but if there are ways to make your money work harder for you. If interest rates are low, compare what you’ll spend in interest on a loan
versus what your money could earn if it were Invested. If you think you can get a higher return from investing your cash than what you’ll pay in interest on a loan, borrowing a small amount at a low rate maybe make sense.
Written by admin· Filed Under debt , Tags:, good debt, Information
Comments
Got something to say?