| Believe it or not there is a difference between | | | | On the other hand if you stick with the credit |
| good debt and bad debt. Not many people realize | | | | card debt and you will have picked yourself up a |
| this as they just see a debt as something that | | | | bad debt. You very rarely have anything of value |
| they have to pay back and that the two | | | | to show for your credit card debt, clothes and |
| different kinds of debt are completely different. | | | | food have no long term value in them, for |
| Lets take a look at the two and you can decide if | | | | example that nice shirt that you got last week |
| your debts are good or bad. | | | | was worth a lot less when it left the store in your |
| A good debt is an investment, for example a | | | | bag than what it is now on your back. |
| school loan is a debt that offers value as with an | | | | A lot of people think that purchasing a car is a |
| education you will be able to (or your child will be | | | | good debt but when you take into consideration |
| able to) get a better job using that education. A | | | | that a car depreciates in value by a massive |
| mortgage is considered a good debt to have as | | | | amount in the time it takes you to pay off the |
| you get a house and you have something of real | | | | loan the asset that you have at the end of the |
| value when you have finished paying it off. A Real | | | | loan is worth much less than you paid meaning is |
| Estate Loan or a home equity loan to consolidate | | | | is a bad debt. |
| debts where you have 28% interest on a credit | | | | These are just a few examples of good debt and |
| card and you can get a home equity loan at 6% | | | | bad debt it isn't as complicated as it sounds really |
| this is considered a good debt. Especially when the | | | | is it? |
| 6% home loan is tax deductible | | | | |