When Debt Can Be Okay And When It Is Surprisingly Good (Lightning Round)

 


In this Lightning Round, Amy asks the begging question: "If
there is bad debt, does that mean there is good debt?" The answer
is simple, yes. In the 5 minute clip above, I highlight a common
mistake in regards to paying off personal debt.
D** on't assume all debt is bad.**
 
Homeowners - pay attention, friends!

 


Sure, we can all agree on the obvious bad debts like credit
cards, high-interest personal loans, etc. The majority of people
I meet with will agree that there are good debts, too. Do you
realize the great debt people often overlook today?


Homeowners are sitting on top of some great debt in this
historical season of low-interest rates!
 
We're living in the lowest home interest rate environment ever
- hovering around 4%!

 


If you have a high mortgage, pay it off. But most of you reading
this have a great rate, and I wouldn't advise you to aggressively
get rid of it because it is labeled as "debt."
Listen, right now you can probably beat your interest rate with
investments over time! It's crazy.

 


Many of you should wisely investigate paying your mortgage,
enjoying your home increase in value, and taking the additional
money you would have put toward your home re-direct it toward
investments.
 


Don't forget that while everything else in the world is getting
more expensive, your 30-year fixed mortgage is actually net
becoming less expensive every year with inflation.


 


_ CAUTION: Like most financial products we
discuss, these comments on debt aren't always black and white.
This must be addressed in the larger context of your personal
situation, but please (unless your emotionally fixated on your
home debt) consider a different approach._


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