RSS

 
Good debt is an investment that will grow in value or generate long-term income or equity.
 
Taking out a mortgage to buy a home is usually considered good debt as well. Like student loans, home mortgages generally have lower interest rates than other debt, plus that interest is tax deductible.
 
Even though mortgages are long-term loans (30 years in many cases), those relatively low monthly payments allow you to keep the rest of your money free for investments and emergencies. The ideal situation would be that your home increases in market value over time, enough to cancel out the interest you've paid over that same period.

Bad debt is debt incurred to purchase things that quickly lose their value and does not generate long-term income. Bad debt is also debt that carries a high interest rate, like credit card debt. The general rule to avoid bad debt is: If you can't afford it and you don't need it, don't buy it. If you buy a fancy, $200 pair of shoes on your credit card, but can't pay the balance on your card for years, those shoes will eventually cost you over $250, and by then they'll be out of style.
 
Payday loans or cash advance loans are some of the worst kinds of debt. In a payday loan, the borrower writes a personal check to the lender for the amount he wants to borrow, plus a fee. Then he has until his next payday to pay back the loan amount, plus the original fee and any interest incurred over that time period. Interest rates for payday loans are astronomical, starting at 300 percent annually.
 
So be a smart cookie! Review your situation, determine the best solution within your means, and make sure it will benefit you in the long run!  
Read
Categories:   abbotsford | Abbotsford East, Abbotsford Real Estate | Abbotsford Real Estate | Abbotsford West, Abbotsford Real Estate | Aberdeen, Abbotsford Real Estate | Agassiz, Agassiz Real Estate | Aldergrove Langley, Langley Real Estate | assistant | bowman | Bradner, Abbotsford Real Estate | buying | cash advance | Cedar Hills, North Surrey Real Estate | Central Abbotsford, Abbotsford Real Estate | Chilliwack E Young-Yale, Chilliwack Real Estate | Chilliwack N Yale-Well, Chilliwack Real Estate | Chilliwack Real Estate | Chilliwack W Young-Well, Chilliwack Real Estate | Chilliwack Yale Rd West, Chilliwack Real Estate | Common Buyers Mistakes | coordinator | Cottonwood MR, Maple Ridge Real Estate | debt | Dhaliwal | Durieu, Mission Real Estate | East Central, Maple Ridge Real Estate | Eastern Hillsides, Chilliwack Real Estate | Eimers | Fort St. John Real Estate | Fraser Valley Blanket Drive Donate Warmth | Fraserview NW, New Westminster Real Estate | FVREB Out of Town, FVREB Out of Town Real Estate | Greendale, Sardis Real Estate | Guildford, North Surrey Real Estate | Harrison Hot Springs, Harrison Hot Springs Real Estate | Harrison Mills, Harrison Mills Real Estate | Hatzic, Mission Real Estate | Home sales Fraser Valley | Hope Center, Hope Real Estate | Hope Silver Creek, Hope Real Estate | Krista | Krista Dhaliwal | landmark | Langley City, Langley Real Estate | Lindell Beach, Cultus Lake Real Estate | listing | Little Fort, North East Real Estate | loans | Matsqui, Abbotsford Real Estate | mission | Mission BC, Mission Real Estate | Mission-West, Mission Real Estate | Morgan Creek, South Surrey White Rock Real Estate | mortgage | Mt Woodside, Agassiz Real Estate | Mt Woodside, Harrison Mills / Mt Woodside Real Estate | Mt Woodside, Harrison Mills Real Estate | North BC real estate investments | P3 Stave lake water | Pender Harbour Egmont, Sunshine Coast Real Estate | Poplar, Abbotsford Real Estate | Promontory, Sardis Real Estate | properties | real estate | realtor | Rosedale Popkum, Rosedale Real Estate | Salmon River, Langley Real Estate | Sardis East Vedder Rd, Sardis Real Estate | Sardis South, Sardis Real Estate | Sardis West Vedder Rd, Sardis Real Estate | Sardis West Vedder, Sardis Real Estate | selling | Sumas Mountain, Abbotsford Real Estate | Sumas Prairie, Abbotsford Real Estate | travis | Vedder S Watson-Promontory, Sardis Real Estate | Willoughby Heights, Langley Real Estate | Woodwards, Richmond Real Estate | Yarrow, Yarrow Real Estate
Reciprocity Logo The data relating to real estate on this website comes in part from the MLS® Reciprocity program of either the Greater Vancouver REALTORS® (GVR), the Fraser Valley Real Estate Board (FVREB) or the Chilliwack and District Real Estate Board (CADREB). Real estate listings held by participating real estate firms are marked with the MLS® logo and detailed information about the listing includes the name of the listing agent. This representation is based in whole or part on data generated by either the GVR, the FVREB or the CADREB which assumes no responsibility for its accuracy. The materials contained on this page may not be reproduced without the express written consent of either the GVR, the FVREB or the CADREB.