Interesting take on debt from an article posted on gather.com. It is easy to create rationalizations which convince us there are just some things that we can not pay cash for. Unfortunately, most of us never heeded such advice as young adults with discretionary income. Thankfully, Mvelopes is a great tool to get you back on track, and the Debt Center can help you pay off the debt you have already accumulated.
“Personal finance Topic #167 – Good debt vs. bad debt
“Good debt vs. bad debt”
I hear this phrase so often that I have to set this comparison straight in this post.
First: there is no such thing as a good debt. All debts are good for the lenders, but bad for the consumers. Debts generally have interest, penalties, and possibly fees, none of which helps you pay down your principle by one penny. If you don’t pay back ANY debt, it can lead to a ding on your credit score, bankruptcy, foreclosure, repossession, garnishment, or possibly lead to criminal offense.”
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[photo courtesy of flickr / CC BY-SA 2.0]