I want us to consider debt and the impact of it on our overall financial position. It is my hope that everyone on this forum is working towards Financial Independence, and will get there soon.
Debt is often talked about as 'good debt' and 'bad debt' with the good typically thought of as tax advantaged or healthy leveraging. Examples of this might be student loans or mortgages. I think there are many people here in the forum that have both.
When you sign up for good debt, I think it can be a good decision - getting the home that you need with a bit of leverage is helpful, and frequently can generate a lot of wealth. Similarly with a student loan that increases future earning potential.
However, I'd like to propose that as soon as you close on your home, and as soon as you graduate college these 'good debts' become bad. They are seriously hampering your ability to break into Financial Independence and should be paid off ASAFP.
What do you think? Are good debts still good, or if not, what are you doing about them?
Debt is often talked about as 'good debt' and 'bad debt' with the good typically thought of as tax advantaged or healthy leveraging. Examples of this might be student loans or mortgages. I think there are many people here in the forum that have both.
When you sign up for good debt, I think it can be a good decision - getting the home that you need with a bit of leverage is helpful, and frequently can generate a lot of wealth. Similarly with a student loan that increases future earning potential.
However, I'd like to propose that as soon as you close on your home, and as soon as you graduate college these 'good debts' become bad. They are seriously hampering your ability to break into Financial Independence and should be paid off ASAFP.
What do you think? Are good debts still good, or if not, what are you doing about them?