At first glance, all debts seem to be bad. But it is not like that, the debts can be cataloged in 2 ways and everything depends on the utility that this has in your finances
Personal finances are still an unexplored world and very few people recognize the importance of having total control over finances. It is for this reason that many times you get involved in money problems that you have no idea of when they appeared and that, in addition, you do not know how to make them disappear.
This is why, often, when you have a problem with money, the first solution that comes to mind is: lend, whatever amount, with anyone (Read: 5 tips to pay your debts easily). The important thing is to have the money you can to pay off the debt that is pressing you at that precise moment.
Lending is not bad, nor do we want you to see this solution as a ghost that you have to fight, but, on the contrary, it is an effective option, that you must learn to manage and control it so that the results you are looking for are even better than what you think (Lee: How to apply for smart loans?)
Today we want to talk about what are good debts and what are bad debts, all in order to have more tools when deciding and be more aware of the decisions you make when it comes to your finances, remember that, from the balance of these, much of your stability depends. Read carefully what we will tell you next:
What are bad debts?
While you can not see the debts as your worst enemy, if you must bear in mind that it is this type of debt that makes you poorer, they take you out of a hurry, but they still represent a latent expense for you.
Bad debts are those purchases that you make on impulse and without necessity, but when you can not pay them immediately, you decide to finance them or ask for them on credit to pay them off little by little, without looking at the interest and the amount of time that will take you settle the total of this obligation.
These debts have one thing in common: they have no return for you and they do not serve you at all, except to give you headaches and cause you worry when the payment date approaches.
What do we recommend? Before acquiring a debt for clothes, trips, household items and so on, think about whether it is really necessary to do it or if on the contrary you can wait and through savings to acquire them so it takes a little more time (Lee: 2 effective methods for save a million pesos in a short time).
What are good debts?
Parallel to the bad debts, you find the good debts, which are those debts that, yes generate returns to your economy and that alone, can be paid with tranquility, because you have destined them to something that will surely have a result in the time that you It will be very favorable.
The good debts are those that you acquire to invest in a good that will last in time, for example: a house, a business, among others. And that, in addition, they can be used by themselves to pay the loan that you acquired to obtain it.
These debts can be grouped within a single word that defines them exactly: investment, and is that easily a house to put it in rent, easily begins to pay for itself the money from the debt you purchased to buy it, and with the business, something similar happens, since this will generate profits that will allow you to pay off the debt in its entirety.
Something you must keep in mind, is that in Rapicredit, through our free destination credits, you can invest your credit in what is most profitable for your finances, choosing the date in which you want to pay and always having an available quota your disposal.
Before acquiring a new debt, keep in mind if this is good or bad for your pocket, so you can avoid future headaches, and also help you to be more aware of the decisions you make and that sometimes affect you so badly.