Category Archives: Debt

26 - 2015

Differentiate between Good and Bad Debt

Most people have debt of some sort. It does not necessarily mean a problem. The real estate market would be virtually non-existent without mortgages that tend to be long term, up to 30 years, at a rate which reflects the current economic climate. If rates are low it certainly makes sense to look at a fixed rate mortgage as the easiest way to budget. If the rate is flexible then things can obviously change, up and down. The fact that real estate is a good medium to long term investment means that the mortgage is good debt; you will be able to build up an asset as a result. Student debt is probably positive debt as well. Interest rates are not onerous and repayment can be deferred until you are working and able to do so. If you graduate your prospects will improve and funding your education will have been […]