You have all heard talk about good loans vs bad loans. And now if you stress like me, you are wondering….what if I have the wrong type of loan??
Well lets break it down, on what are good and bad loans.
Good loans are loans used to improve your assets or earning potential. This would be loans for studies, courses, houses, rental properties, and some types of investments. Even a car repayment as this allows your to travel around and get a potentially better job.
Bad loans are a night out on your credit card, overspending, debt from travelling, debt from Credit Cards, and more. This often occurs when we have impulse buys or if you’re me had a little too much wine!
So are Bad loans bad??
Not necessarily. Sometimes things hit the fan and there is nothing we can do to stop it. But we must try to keep our Bad loans to a minimum. As they often have high interest and offer little to no return on the cost. Do I have the Wrong Type of Loan?
Most important thing to remember is that you are human, you are not alone, and you can get out of the debt! Make a plan! And stick to it and you can make it through. And if you are struggling, speak to professionals like DebtBusters! They can assist you in negotiating with your creditors and help you consolidate. Call them on 086 999 0606
Be smart and enjoy life!
Have a question? Ask away!