How to Successfully Buy a Used Car

How to Successfully Buy a Used Car
I have never bought a brand new car nor have I ever taken a loan out on a car. I have always bought used vehicles from private sellers. There is an art to this though. While I’ve had great experiences with both cars I’ve purchased this way, not everyone has had luck with buying used cars or purchasing vehicles from private sellers.




Purchasing from a private seller can be a bit unnerving, just like buying a used car instead of a brand new car can be a bit worrisome. However, you don’t have to worry about buying a used car from a private seller if you keep these simple tips in mind:

  1. It helps if you know the seller beforehand. The first car that I bought from a private seller was a car I purchased from a family friend. We weren’t very close but I knew her enough to know that she wouldn’t sell me a lemon. She was up front with the problems that the car had. It needed new tires, new brakes and rotors and the trunk didn’t always open. I purchased the car for $1,000 and had the car for four more years.
  2. Have the car checked by your mechanic. If you have a trusted mechanic, you should get the car checked by YOUR mechanic before you make the purchase. Ask the seller if you can take the car on a test drive, drive the vehicle to your mechanic and have them do a quick look. Even if the private seller says that they just had the car looked at, you should have it checked by someone you know and trust.
  3. Check the Kelly Blue Book price. This is important when you are purchasing any car. Check the KBB listing for the car. You can look up the year, make and model, factor in mileage and other damage to get the suggested selling price of the car. You want to pay at or below the KBB price. You can use this information to haggle with the seller. KBB also offers reviews of the car from consumers so you can get a good idea of how the car will run.
  4. Be knowledgeable about the vehicle. Do your research and make sure you know what you need to know about the car prior to arriving to see it/buy it. Have a list of questions ready for the seller about the car. If you are not sure if you will be able to come up with a good list of questions yourself or know the right questions to ask, bring someone along who can help you become more knowledgeable about the vehicle.
  5. Don’t be pressured into buying. Many private sellers as well as dealers on car lots will try and pressure you into buying a vehicle. Private sellers will oftentimes tell you that there is more than one person interested in the vehicle and that you’ll have to make a decision quickly in order to still get the car. Don’t be pressured or threatened by these statements. Tell them that you are going to continue to think about it and shop around.

Have you purchased a used car from a private seller? Did you have any luck? 

Photo: Flickr: refreshment_66

25 Alarming Facts About Debt in America

Facts About Debt in America

It is no secret that debt is a huge problem in America, however, when most people think about debt in America they think about the national debt (which is in the trillions). The debt that many people are overlooking is the debt that lies within our own homes. In fact, 43 percent of American families spend more money than they make every year.




Why is this still happening? People hear about debt, read articles about budgeting and possibly even seek professional financial advice but we, as Americans, are still allowing ourselves to fall deeper and deeper into debt. Some scholars say this is because people are not educated on the reality of debt in America. Learning about debt and financial wellness is the only way to break the vicious cycle of poverty. In effort to better people’s knowledge of debt in America, here are 25 rather alarming facts:

Facts About Debt in America

  1. Forty-six percent of all Americans carry some kind of credit card debt from month-to-month.
  2. Americans carry $798 billion in credit card debt in all (you could not amass that amount of debt in your lifetime even if you spent $7 billion every day since the day you were born and lived to be 100 years old).
  3. The average amount of credit card debt per household is practically $16,000 and the average interest rate on credit cards in America is just over 13 percent.
  4. People ages 45 to 54 hold the most credit card debt (averaging about $9,000 per person in this age group).
  5. Surprisingly, the more money you make, the more credit card debt you carry. People in the $160,000 a year and more income level carry over $11,000 in credit card debt, on average, compared to those who only make $25,000 a year or less ($3,000 in credit card debt).
  6. The average consumer in America has 3.5 credit cards.
  7. Most Americans have at least one credit card before the age of 21.
  8. On average, men carry $2,000 more in credit card debt than women.
  9. Caucasian Americans carry more credit card debt than any other race in America (averaging over $7,900).
  10. Credit card debt is only a fraction of the problem though. The average American family holds over $132,000 in total debt.
  11. Forty-five percent of all auto loans in America are made to be paid over six years or longer (plenty of cars don’t even last that long).
  12. In America, 70 percent of all car purchases involve a loan.
  13. Mortgage debt is about 70 percent higher than it was just 20 years ago.
  14. The percentage of residential mortgages that are currently in foreclosure sits at 4.5 percent.
  15. Eight million Americans are at least one month behind on their mortgage right now.
  16. About 40 percent of Americans are currently in medical debt or paying off medical bills.
  17. In more than 60 percent of personal bankruptcies medical bills play a major factor in the reasoning behind the individual filing for bankruptcy.
  18. Student loan debt in the United States is over $1 trillion.
  19. About 65 percent of all American college students will graduate with student loan debt.
  20. The default rate on student loans has doubled in the past 10 years.
  21. Twenty-five percent of college students use credit cards to pay their tuition and other fees.
  22. The average American household is paying $6,658 in interest each year.
  23. There is a strong correlation between debt and mental illness. The likelihood of having a mental health problem is three times higher among people with debt than those who have not.
  24. Nearly 1 in 5 of Americans between the ages of 18 and 24 consider themselves to be in some sort of debt hardship.
  25. The rise in cost of living has outpaced growth in income for the past 12 years (this is the root of the debt problem).

How to Get Rid of the Debt Problem in America

How do we fix this problem? Well, there is no one answer to fixing the debt problem in America. However, there is one simple step that could help: get rid of things you don’t need. For the most part people are racking up debt for items and services that just aren’t necessary. For instance, do you really need Netflix AND a premium cable package? Do you need your home phone and cell phone? There are probably a few cuts that you could make in your budget to make it easier to pay off your debt and avoid racking up more debt in the future.

What do you think the answer to America’s debt problem is?

Photo: Flickr: Images Money

How I Plan to Travel the World for Free

How I Plan to Travel the World for Free
When I was a child (around three or four years old), my family took me on my very first road trip. We drove from Charlotte, N.C. to Orlando, Fla. for a vacation at Universal Studios with my grandparents. Ever since then I have had a yearning for travel and as I get older I realize how difficult it is to curb that urge. That is why I have decided to research ways to travel the world for extremely cheap.

You’ve probably heard of people receiving free cruises or free trips through some sort of contest. That isn’t the only way to travel for cheap or free though. In fact, upon doing my research, I have found that traveling is extremely affordable (if you’re flexible). Here are a few tips and ideas that can help you travel for really cheap or free:

Change Your Job

If you are in the position to do so, you should find a more flexible job if your heart is set on traveling the world. I always knew that I wanted to do an extensive amount of traveling so when I graduated college, I sought out positions that I could work from anywhere. You can find a plethora of work-from-home jobs online on sites like Indeed. My current position is done 100% remotely so it is easy to travel with it. I work my regular hours but I simply work them from the hotel or friend’s house that I am staying at.

If working remotely isn’t something that interests you, you can also find a position that pays you to travel. Travel journalists, for instance, make a living at traveling and writing about their experiences. Travel journalism jobs can be hard to come by though. If you’re not a writer or having a hard time coming across a travel journalism job, there are numerous other options available. One of my personal favorite options for getting paid to travel is MindMyHouse. People post their homes on MindMyHouse and provide a time frame for how long they will be gone and they need someone to watch their home. This eliminates the need to pay for a hotel and, in some cases, people offer to pay for you to mind their home. The best part of it all is that you get to visit a new area and explore while you’re there.

Airbnb is a Good Option

Some people want to travel but don’t want to live their lives on the road like a travel journalist or a professional house sitter. Don’t worry, there are options for you as well! If you have the money to plan a trip, whether it be in the United States or abroad, Airbnb is a great way to save money on your lodging costs.

Airbnb is a service that allows people to open up their homes and rent a room, or the entire house, as a bed-and-breakfast. My best friend and I used an Airbnb in New Orleans and the experience was delightful! We rented the top floor of the woman’s home. When we got there, she offered a warm welcome and was able to provide extremely useful information about activities to do in the area. The primary benefit of staying with Airbnb is the savings. Instead of spending over $100 per night at a hotel in New Orleans, we stayed just outside the city in her home for $50 a night.

Couchsurfing is a Great Option

Couchsurfing International Inc. operates Couchsurfing.com. It is a hospitality service as well as a social media platform that allows members to “surf” on couches by staying as a guest at a host’s home, host travelers, meet other members or join an event. It was founded in 2003, launched in 2004 and has progressively gained popularity throughout the years.

Registration for the site is free. You can pay to become a verified member, however, payment is not necessary to access all of the benefits of the site. Members create profile pages that include information about themselves along with photos of themselves and the accommodations that they provide. Homestays, as the site calls them, are a based on a consensual agreement between the owner of the home and the traveler. The duration of the visit and terms of stay are usually worked out in advance. Couchsurfing is an absolutely free option for lodging and a great way to get to know people in the area as well as explore the true culture of the region in which you are visiting.

Win Free Trips

We all dream of winning an all-expense paid vacation but unless you’re slated to be a guest of “Wheel of Fortune,” it seems unlikely that you’ll win a trip anywhere. This may be because you aren’t looking into the right kind of contests. You may have seen Facebook “contests” that claim with a like, share and comment you will be entered into a contest for a free trip. There are far too many people entering these types of contests to have a fair chance at winning. Not all hope is lost though.

A friend of mine has been on FIVE cruises this year alone. Cruises aren’t necessarily the most expensive vacation in the world but they are certainly not the cheapest. He has only paid for one of the five cruises he’s taken this year though. How? Well, the first cruise he went on this year, he went into the casino and gambled a bit and won a free cruise. This continued to happen each time he’s been on a cruise since then and departs on his sixth cruise of the year this week (it’s sickening how lucky he is).

Work-to-Live Programs

Many countries have what are called “work-to-live” programs. Essentially, you apply for a work visa in said country and go through the work-to-live website to get placed in a job based on your given skill set. For instance, if you are good with kids, you could get placed as a nanny in the country that you visit. While you will have to front the initial cost of the trip, you can hold a job there and live in the country for up to six months. Most work-to-live programs also provide you with a first month’s rent as well as a phone card for the first month that you live there. I’ve been checking out Australia’s work-to-live program most recently and it provides these two things during your first month in the country and helps get you placed in a job.

In short, if you are looking to do more traveling this year, next year, in the next 10 years, you don’t have to let money stop you from doing so. You can travel for cheap, stay for free and work your way through your next adventure.

Do you have any tips on how to travel cheap or free? 

Photo: Flickr: fdecomite

Good Debt vs. Bad Debt

Good Debt vs. Bad Debt
When you hear the word “debt” it sends a chill up your spine. However, debt does not always have to have that affect on you. While no one wants a crippling amount of debt, having no debt may be negatively affecting you. Everyone has heard of “good debt” and “bad debt” but what does it really mean?

Well, in the most simplest of terms, not all debt is created equally. There is good debt, bad debt and really bad debt. Not all of these are clear when you enter the loan or credit card agreement. Because not all kinds of debt are clearly labeled, many people have begun to avoid debt altogether, according to Get Lenny.

Where is the distinction between good debt and bad debt then? Well, if you speak to billionaire Warren Buffett, all debt is bad debt. Warren Buffett, however, can afford to not have any debt. Most of us will encounter some type of debt in our lifetime though. In fact, eight in 10 Americans are in debt but that doesn’t mean it is out of control and it doesn’t mean it is all bad.

What is Bad Debt?

Bad debt is generally debt that you’ve racked up buying things you didn’t necessarily need or things that would not serve you for the amount of time you’d be paying for them. For instance, if you and your friends hang out on the weekends and you always charge the expenses of your hangouts on your credit card. Normally this wouldn’t be a problem and wouldn’t be considered bad debt (as long as you can pay it off). It becomes bad debt when the credit card bill does not get paid in full one month. You begin paying interest on your credit card at that point and your hard-earned money is going out the window.

Another example of bad debt is a purchase that will not maintain or appreciate in value. These are loans for things like vehicles, technology purchases or furniture purchases. By the time you are done paying the item(s) off, they have depreciated in value so you’ve paid the upfront price, plus interest on items that will never be worth what you’ve paid for them.

What is Good Debt?

Now that we’ve established what bad debt is, what is good debt? Well, for some people, there is no such thing as good debt. However, there are some lines of credit that can actually increase your wealth. The best example of this is purchasing a home. If you are able to watch the real estate market and list your house during a time when the national benchmark annualized appreciation is higher than your interest rate, you will be able to sell your home and make money on it. This means you’ll be able to pay out the remainder on your loan and potentially walk away with tens of thousands of dollars.

Educational debt is also considered good debt to many people. This is because, in theory, you will be able to pay for your entire life’s expenses with the career you will have from going to school for four years. You will not only be able to pay your debt with your salary but you will also be able to pay your bills, save and build a life for yourself from your educational debt.

Though it can be hard to decipher between the two, debt has a place in 80 percent of Americans’ lives. Be careful where you choose to have your debts lie.

Do you have any “good” debt?

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How to Successfully Buy a Used Car

How to Successfully Buy a Used Car
I have never bought a brand new car nor have I ever taken a loan out on a car. I have always bought used vehicles from private sellers. There is an art to this though. While I’ve had great experiences with both cars I’ve purchased this way, not everyone has had luck with buying used cars or purchasing vehicles from private sellers.




Purchasing from a private seller can be a bit unnerving, just like buying a used car instead of a brand new car can be a bit worrisome. However, you don’t have to worry about buying a used car from a private seller if you keep these simple tips in mind:

  1. It helps if you know the seller beforehand. The first car that I bought from a private seller was a car I purchased from a family friend. We weren’t very close but I knew her enough to know that she wouldn’t sell me a lemon. She was up front with the problems that the car had. It needed new tires, new brakes and rotors and the trunk didn’t always open. I purchased the car for $1,000 and had the car for four more years.
  2. Have the car checked by your mechanic. If you have a trusted mechanic, you should get the car checked by YOUR mechanic before you make the purchase. Ask the seller if you can take the car on a test drive, drive the vehicle to your mechanic and have them do a quick look. Even if the private seller says that they just had the car looked at, you should have it checked by someone you know and trust.
  3. Check the Kelly Blue Book price. This is important when you are purchasing any car. Check the KBB listing for the car. You can look up the year, make and model, factor in mileage and other damage to get the suggested selling price of the car. You want to pay at or below the KBB price. You can use this information to haggle with the seller. KBB also offers reviews of the car from consumers so you can get a good idea of how the car will run.
  4. Be knowledgeable about the vehicle. Do your research and make sure you know what you need to know about the car prior to arriving to see it/buy it. Have a list of questions ready for the seller about the car. If you are not sure if you will be able to come up with a good list of questions yourself or know the right questions to ask, bring someone along who can help you become more knowledgeable about the vehicle.
  5. Don’t be pressured into buying. Many private sellers as well as dealers on car lots will try and pressure you into buying a vehicle. Private sellers will oftentimes tell you that there is more than one person interested in the vehicle and that you’ll have to make a decision quickly in order to still get the car. Don’t be pressured or threatened by these statements. Tell them that you are going to continue to think about it and shop around.

Have you purchased a used car from a private seller? Did you have any luck? 

Photo: Flickr: refreshment_66

25 Alarming Facts About Debt in America

Facts About Debt in America

It is no secret that debt is a huge problem in America, however, when most people think about debt in America they think about the national debt (which is in the trillions). The debt that many people are overlooking is the debt that lies within our own homes. In fact, 43 percent of American families spend more money than they make every year.




Why is this still happening? People hear about debt, read articles about budgeting and possibly even seek professional financial advice but we, as Americans, are still allowing ourselves to fall deeper and deeper into debt. Some scholars say this is because people are not educated on the reality of debt in America. Learning about debt and financial wellness is the only way to break the vicious cycle of poverty. In effort to better people’s knowledge of debt in America, here are 25 rather alarming facts:

Facts About Debt in America

  1. Forty-six percent of all Americans carry some kind of credit card debt from month-to-month.
  2. Americans carry $798 billion in credit card debt in all (you could not amass that amount of debt in your lifetime even if you spent $7 billion every day since the day you were born and lived to be 100 years old).
  3. The average amount of credit card debt per household is practically $16,000 and the average interest rate on credit cards in America is just over 13 percent.
  4. People ages 45 to 54 hold the most credit card debt (averaging about $9,000 per person in this age group).
  5. Surprisingly, the more money you make, the more credit card debt you carry. People in the $160,000 a year and more income level carry over $11,000 in credit card debt, on average, compared to those who only make $25,000 a year or less ($3,000 in credit card debt).
  6. The average consumer in America has 3.5 credit cards.
  7. Most Americans have at least one credit card before the age of 21.
  8. On average, men carry $2,000 more in credit card debt than women.
  9. Caucasian Americans carry more credit card debt than any other race in America (averaging over $7,900).
  10. Credit card debt is only a fraction of the problem though. The average American family holds over $132,000 in total debt.
  11. Forty-five percent of all auto loans in America are made to be paid over six years or longer (plenty of cars don’t even last that long).
  12. In America, 70 percent of all car purchases involve a loan.
  13. Mortgage debt is about 70 percent higher than it was just 20 years ago.
  14. The percentage of residential mortgages that are currently in foreclosure sits at 4.5 percent.
  15. Eight million Americans are at least one month behind on their mortgage right now.
  16. About 40 percent of Americans are currently in medical debt or paying off medical bills.
  17. In more than 60 percent of personal bankruptcies medical bills play a major factor in the reasoning behind the individual filing for bankruptcy.
  18. Student loan debt in the United States is over $1 trillion.
  19. About 65 percent of all American college students will graduate with student loan debt.
  20. The default rate on student loans has doubled in the past 10 years.
  21. Twenty-five percent of college students use credit cards to pay their tuition and other fees.
  22. The average American household is paying $6,658 in interest each year.
  23. There is a strong correlation between debt and mental illness. The likelihood of having a mental health problem is three times higher among people with debt than those who have not.
  24. Nearly 1 in 5 of Americans between the ages of 18 and 24 consider themselves to be in some sort of debt hardship.
  25. The rise in cost of living has outpaced growth in income for the past 12 years (this is the root of the debt problem).

How to Get Rid of the Debt Problem in America

How do we fix this problem? Well, there is no one answer to fixing the debt problem in America. However, there is one simple step that could help: get rid of things you don’t need. For the most part people are racking up debt for items and services that just aren’t necessary. For instance, do you really need Netflix AND a premium cable package? Do you need your home phone and cell phone? There are probably a few cuts that you could make in your budget to make it easier to pay off your debt and avoid racking up more debt in the future.

What do you think the answer to America’s debt problem is?

Photo: Flickr: Images Money

How I Plan to Travel the World for Free

How I Plan to Travel the World for Free
When I was a child (around three or four years old), my family took me on my very first road trip. We drove from Charlotte, N.C. to Orlando, Fla. for a vacation at Universal Studios with my grandparents. Ever since then I have had a yearning for travel and as I get older I realize how difficult it is to curb that urge. That is why I have decided to research ways to travel the world for extremely cheap.

You’ve probably heard of people receiving free cruises or free trips through some sort of contest. That isn’t the only way to travel for cheap or free though. In fact, upon doing my research, I have found that traveling is extremely affordable (if you’re flexible). Here are a few tips and ideas that can help you travel for really cheap or free:

Change Your Job

If you are in the position to do so, you should find a more flexible job if your heart is set on traveling the world. I always knew that I wanted to do an extensive amount of traveling so when I graduated college, I sought out positions that I could work from anywhere. You can find a plethora of work-from-home jobs online on sites like Indeed. My current position is done 100% remotely so it is easy to travel with it. I work my regular hours but I simply work them from the hotel or friend’s house that I am staying at.

If working remotely isn’t something that interests you, you can also find a position that pays you to travel. Travel journalists, for instance, make a living at traveling and writing about their experiences. Travel journalism jobs can be hard to come by though. If you’re not a writer or having a hard time coming across a travel journalism job, there are numerous other options available. One of my personal favorite options for getting paid to travel is MindMyHouse. People post their homes on MindMyHouse and provide a time frame for how long they will be gone and they need someone to watch their home. This eliminates the need to pay for a hotel and, in some cases, people offer to pay for you to mind their home. The best part of it all is that you get to visit a new area and explore while you’re there.

Airbnb is a Good Option

Some people want to travel but don’t want to live their lives on the road like a travel journalist or a professional house sitter. Don’t worry, there are options for you as well! If you have the money to plan a trip, whether it be in the United States or abroad, Airbnb is a great way to save money on your lodging costs.

Airbnb is a service that allows people to open up their homes and rent a room, or the entire house, as a bed-and-breakfast. My best friend and I used an Airbnb in New Orleans and the experience was delightful! We rented the top floor of the woman’s home. When we got there, she offered a warm welcome and was able to provide extremely useful information about activities to do in the area. The primary benefit of staying with Airbnb is the savings. Instead of spending over $100 per night at a hotel in New Orleans, we stayed just outside the city in her home for $50 a night.

Couchsurfing is a Great Option

Couchsurfing International Inc. operates Couchsurfing.com. It is a hospitality service as well as a social media platform that allows members to “surf” on couches by staying as a guest at a host’s home, host travelers, meet other members or join an event. It was founded in 2003, launched in 2004 and has progressively gained popularity throughout the years.

Registration for the site is free. You can pay to become a verified member, however, payment is not necessary to access all of the benefits of the site. Members create profile pages that include information about themselves along with photos of themselves and the accommodations that they provide. Homestays, as the site calls them, are a based on a consensual agreement between the owner of the home and the traveler. The duration of the visit and terms of stay are usually worked out in advance. Couchsurfing is an absolutely free option for lodging and a great way to get to know people in the area as well as explore the true culture of the region in which you are visiting.

Win Free Trips

We all dream of winning an all-expense paid vacation but unless you’re slated to be a guest of “Wheel of Fortune,” it seems unlikely that you’ll win a trip anywhere. This may be because you aren’t looking into the right kind of contests. You may have seen Facebook “contests” that claim with a like, share and comment you will be entered into a contest for a free trip. There are far too many people entering these types of contests to have a fair chance at winning. Not all hope is lost though.

A friend of mine has been on FIVE cruises this year alone. Cruises aren’t necessarily the most expensive vacation in the world but they are certainly not the cheapest. He has only paid for one of the five cruises he’s taken this year though. How? Well, the first cruise he went on this year, he went into the casino and gambled a bit and won a free cruise. This continued to happen each time he’s been on a cruise since then and departs on his sixth cruise of the year this week (it’s sickening how lucky he is).

Work-to-Live Programs

Many countries have what are called “work-to-live” programs. Essentially, you apply for a work visa in said country and go through the work-to-live website to get placed in a job based on your given skill set. For instance, if you are good with kids, you could get placed as a nanny in the country that you visit. While you will have to front the initial cost of the trip, you can hold a job there and live in the country for up to six months. Most work-to-live programs also provide you with a first month’s rent as well as a phone card for the first month that you live there. I’ve been checking out Australia’s work-to-live program most recently and it provides these two things during your first month in the country and helps get you placed in a job.

In short, if you are looking to do more traveling this year, next year, in the next 10 years, you don’t have to let money stop you from doing so. You can travel for cheap, stay for free and work your way through your next adventure.

Do you have any tips on how to travel cheap or free? 

Photo: Flickr: fdecomite

Good Debt vs. Bad Debt

Good Debt vs. Bad Debt
When you hear the word “debt” it sends a chill up your spine. However, debt does not always have to have that affect on you. While no one wants a crippling amount of debt, having no debt may be negatively affecting you. Everyone has heard of “good debt” and “bad debt” but what does it really mean?

Well, in the most simplest of terms, not all debt is created equally. There is good debt, bad debt and really bad debt. Not all of these are clear when you enter the loan or credit card agreement. Because not all kinds of debt are clearly labeled, many people have begun to avoid debt altogether, according to Get Lenny.

Where is the distinction between good debt and bad debt then? Well, if you speak to billionaire Warren Buffett, all debt is bad debt. Warren Buffett, however, can afford to not have any debt. Most of us will encounter some type of debt in our lifetime though. In fact, eight in 10 Americans are in debt but that doesn’t mean it is out of control and it doesn’t mean it is all bad.

What is Bad Debt?

Bad debt is generally debt that you’ve racked up buying things you didn’t necessarily need or things that would not serve you for the amount of time you’d be paying for them. For instance, if you and your friends hang out on the weekends and you always charge the expenses of your hangouts on your credit card. Normally this wouldn’t be a problem and wouldn’t be considered bad debt (as long as you can pay it off). It becomes bad debt when the credit card bill does not get paid in full one month. You begin paying interest on your credit card at that point and your hard-earned money is going out the window.

Another example of bad debt is a purchase that will not maintain or appreciate in value. These are loans for things like vehicles, technology purchases or furniture purchases. By the time you are done paying the item(s) off, they have depreciated in value so you’ve paid the upfront price, plus interest on items that will never be worth what you’ve paid for them.

What is Good Debt?

Now that we’ve established what bad debt is, what is good debt? Well, for some people, there is no such thing as good debt. However, there are some lines of credit that can actually increase your wealth. The best example of this is purchasing a home. If you are able to watch the real estate market and list your house during a time when the national benchmark annualized appreciation is higher than your interest rate, you will be able to sell your home and make money on it. This means you’ll be able to pay out the remainder on your loan and potentially walk away with tens of thousands of dollars.

Educational debt is also considered good debt to many people. This is because, in theory, you will be able to pay for your entire life’s expenses with the career you will have from going to school for four years. You will not only be able to pay your debt with your salary but you will also be able to pay your bills, save and build a life for yourself from your educational debt.

Though it can be hard to decipher between the two, debt has a place in 80 percent of Americans’ lives. Be careful where you choose to have your debts lie.

Do you have any “good” debt?