Free Credit Report Repair Guide

Good debt versus Bad debt

Ok, I am very confused, when has it become good to be in debt? I must be missing something? Many financial gurus talk about bad debt; Credit Cards, and good debt Mortgage and school loans.

The theory is a mortgage is a good debt because you are borrowing money to purchase an “asset” that in theory will appreciate over time. Same with a school loan you are investing in yourself and in time your value will rise.

But the fact of the matter is there is no such thing as a good debt. I like to call it the necessary debt. Being in debt is not a good idea by definition (the state of owing something (especially money); “he is badly in debt”.

Most people can’t buy homes, cars and fund education with cash on hand. I understand that better than anyone. But simply because we need these things does not mean its good debt. And I would encourage everyone to pay their debts off as fast as possible, good or bad.

Crush your debt and live life debt free!

This entry was posted on Friday, March 31st, 2006 at 9:57 pm and is filed under Debt Relief . You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.