August 18, 2011

Good vs bad debt

I've heard, on more than one occasion, that good debt is buying a house. I've also heard that good debt is when you need to pay for schooling and sometimes when you need a new car. So everything else, like credit card debt or using payday advances to buy something you may not necessarily need, is bad debt right? Well, what if you take out extra loans for school but end up using on things you didn't need to? Or what about buying a home that's more than you'll ever need and you get way in over your head? Are both of those things considered bad debt? I guess it all depends on how you look at it. Thankfully the only debt we have is with our student loans. No car or credit card payments woohoo! But, I'm positive we could have paid those off sooner if we hadn't paid for things we didn't need. Live and learn right? Live and learn.

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