Good Debt vs. Bad Debt

Is there really a difference?  Debt is debt!  Most people do not see it like that and refer to non-mortgage debt as bad debt.  They believe that having a mortgage is good debt and it is ok to have that kind of debt load.  Some will even lump in vehicle debt as being OK too.  Not me.

Yes, I will agree that most people are going into debt to purchase a house.  That is a given.  However, many buy the wrong house because they can borrow money to do it.  To some degree, that has had an affect on our current economic state.

Whether it is a bigger house because we can afford the payment, borrowing to make an investment, or just keeping up with the Jones – mortgage debt should not be considered good debt.  No debt is good debt.

Regardless, carrying a mortgage is no fun.  You should strive to pay that thing off as fast you can.  When you do, then you can truly say you are a “homeowner” and potentially be debt free!!


Posted

in

by

Tags: