Alot of the time, even I think debt is all bad and it should be avoided at all costs. But, there are some types of good debt out there.
A few examples of good debt are:
- Mortgage – the debt incurrered when purchasing a home is usually paid back over may years. You also have something of value that could pay off the debt immediately if needed.
- Student Loans – you may regret ever taking out a student loan while in college, but the higher earning potential that you have should make the loans worth their trouble. The rates for Student Loans are also much lower than traditional personal loans.
With any loan that you must make, the best thing to do is to only take out a loan for as much as you need. Put down as high of a down-payment as you possibly can.