Some debt can be good

Article Written by  : Future Finance Solutions

Being in debt is normally not recommended by anyone. However, there are some debts such as taking out a mortgage, getting student loan to fund your education, and an auto loan to buy a car can be good.

Buying a home is part of “the American Dream.” It is the largest investment for many ordinary Americans. Don’t forget the tax benefits you get when you file your Federal tax return. Buying a home is not for everyone. In some expensive home price communities, only option available may be to rent. Also, people who don’t like repairs and maintenance, buying a home may not be a wise decision.

Student loans are cheap way to finance your education that will give you years of earning power. People with college degrees have more earning power, competitive advantage as well as advancement opportunities compared to fellow non-degree workers.

Buying a car with a car loan can help you to establish credit. If you can make a substantial down payment, it will lower your monthly payment. Shop around for a better loan rate and make sure to buy a car that you can afford without breaking the bank. Set aside some funds for maintenance.