It is said that a debt is good when it allows you to increase your profits or generate some kind of value. On the contrary, a debt is bad when borrowed to pay something that disappears over time or loses its value.
It does not mean that all the things you buy should generate some profit
Because you can go on a trip, share a car or appliances but the idea is that, when you borrow money, you do it for things or projects that will give you a greater benefit than what you You are requesting, because they will charge you interest, that is, you will be paying extra.
These are three examples of expenses for which it would be worth borrowing – but always in moderation – A business: Borrowing money to invest in a business is not an expense in vain, since the idea is that it will eventually be profitable. These days it is no longer necessary to be a large amount, you can start with a digital business that you may start attending part time.
A course, diploma or career
It’s a good debt! Well, it allows you to increase your knowledge and strengthen your professional abilities, which in turn will help you get a better job and better opportunities. Thinking about the future never hurts, especially when it comes to considering what the situation will be once we retire.
A property: The value of a property usually increases over time, depending on the treatment you give it, so it qualifies as a good debt. If you have any of these good debts in mind, be careful with the financial institution you are borrowing, since that could make your debt go from good to bad, ideally, the rates are not so high.
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