Control your debt

Make sure you’re borrowing money for the right reasons

  4

by

Online only.

  4

broke_322
It’s likely you won’t be able to avoid debt entirely, so the trick is to manage it wisely.

Bad debt is when you borrow to buy consumable items. If you’re borrowing to buy clothing, vacations, cars, electronics—anything that starts losing value as soon as you buy it—you’re taking on bad debt.

On the other hand, good debt helps you build your net worth. It’s used to buy investments that will go up in value like a home, a business, stocks and even your education.

Make sure your net worth keeps rising and you’re not letting your debt go out of hand.

4 comments on “Control your debt

  1. Very True! It is also a good idea that when and if you do borrow, you check the underlying factors such as interest rate. Usually this is something that people don't realize when they get a new credit card, and then when the bill comes the panic. It is always smart to get a low risk credit card, one with a low interest rate. Also, you need to control debt, and rather than pay your bills once every cycle you should pay them more frequently. This will reduce the balance that you are paying by cutting down on the amount of interest that you are being charged..just some food for thought!

    Reply

  2. Does this actually say borrowing for stocks is a good idea??

    Reply

  3. When dealing with bad debt you should always, always make provision for doubtful debts. It will save you greatly in the long run!

    Reply

Leave a comment

Your email address will not be published. Required fields are marked *