Five Reasons You May Have Debt

Five Reasons You May Have Debt - as part of the expert series by GeoBeats. Five Reasons You May Have Debt Let me first talk about good debt versus bad debt. Good debt is you're building assets, or you're contributing to your income. So, school loans - you're building your career. Buying a home — you're building assets. Even buying a car that's getting you to and from work, if it's cost effective, is a good debt because you're getting to and from work. Bad debt is credit cards or anything where you're consuming goods or... and they're decreasing in value; meanwhile, you still have the debt. So the reason people get into bad debt is, they charge more than they can afford, they may not be saving enough, they may lose a job, they may have illness or disability, and that's where insurance can come into play. And then, finally, loss of a loved one. And again, having adequate insurance and estate plans that protect your loved ones are a good way to prevent having... getting into debt.