Good debt

Good debt

Good debt has a return on investment. The returns may note be immediate



Mortgage is a good debt  as you are making monthly payments towards a property that will eventually be yours when the mortgage is paid off. You also build equity which can be released when the need arises.  It is an investment as the property increases in value, you will not sell it for the same value you bought it for.  Be aware that a number of factors can cause properties to go into negative equity such as recession.

Student loan


Investing in education will help you earn your degree to improve your job prospects and build a career in your chosen field. It is very easy to spend the loan frivolously but put it to good use that when you look back you it will not be with regrets. Make sure you choose something you will enjoy studying if you are not happy with your course see if you can change it. Otherwise you are more likely to drop out or have a miserable time completing your studies. Not to mention a loan that you now have to pay back for something you did not enjoy.

Starting a business


A business loan can help get your business off the ground in a larger scale because of the cash injection. This is a high risk, make sure you have thoroughly researched the area of business you are going into. Create a S.M.A.R.T business plan that paint a true picture of the business.



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