Posted on
June 2, 2009
at
12:34 am
LaScala,A good debt is considered as an investment debt that eventually creates value--examples of these are mortgages, student loans, and real-estate loans. Good debts are also those that are tax-deductible and would produce more wealth in the long run. A business loan is a good example for this concept--say you want to put up a small business but are not able to come up with needed capital. You can take out a business loan from your bank, and as the business progresses, you can pay for what you owed from the bank eventually. As the business grows and flourishes, you are also able to pay more towards the owed capital, until such time that you finally pay it off.Basically, any debt that proves to be a help in improving your financial health is considered as "good."
Posted on
June 2, 2009
at
12:41 am
and then on the opposite end of the spectrum there's what you call "bad debt," which is not to be confused with a written-off or "charged-off" loan. bad debts are consumables, such as credit cards and auto loans. just keep in mind that anything acquired that appreciates or increases its value is deemed as a good loan, and nothing more.
Posted on
June 2, 2009
at
12:43 am
Cool......i got that. but can bad debt be turned into good debt? does anyone know/
Posted on
June 2, 2009
at
1:14 am
I don't think you really can be able to convert bad debts to good debts, but you can turn the good debts into bad ones. Getting a home equity loan is an example for this. Paying debt with debt is not--and never will be--a good idea. This can also result in a higher mortgage payment, and it may take longer to build home equity. Having both kinds of debt is good--keep in mind to deal with each responsibly. At the end of the day, if you're up to your neck in debt, your financial situation is still at risk.
Posted on
June 24, 2009
at
2:51 pm
I don't know, I think you could potentially turn a "bad debt" into a "good debt" if you think about it. For example, taking a $10 K credit card balance atr 30% interest and transferring the balance on to a credit card with a 15% interest rate. I know- it doesn't make the debt go away, but it is "good" in the sense that you will pay back a whole lot less over a shorter period of time.
Posted on
June 24, 2009
at
6:34 pm
So what are the worst things to have on your credit report other than bad debts?
Posted on
June 24, 2009
at
10:36 pm
The worst things that can appear on your credit report other than bad debts:- bankruptcy notations- foreclosures- tax liens- garnishments- legal suits- judgments
Posted on
July 1, 2009
at
4:29 pm
Right. And keep in mind that a satisfied judgment looks better than an unsatisfied judgment. Another thing to add to that list would be repossessions.
Posted on
July 1, 2009
at
5:08 pm
actually less good but we need it we had debt with the appropriate distance within our ability to restore certain needs may be due to increased business or just another of its useful
