Should You Avoid All Debt?

October 6th, 2017 | Author:

You hear financial experts preach about getting out of debt. They tell you to cut up your credit cards and pay for everything with cash. While some people may need to follow this advice, you may wonder if it’s the case for everyone. Should you avoid ever having any kind of debt again?

Not Avoidable

It’s almost impossible to avoid all debt today. The idea of paying cash for everything is a noble one, but it’s not very realistic. If you can only buy the car you can afford with cash, you may end up driving a broken-down vehicle. You’ll always rent if you wait to pay cash for a home. Some debt is unavoidable in today’s society – even though there are those rare cases who truly can pay cash for everything.

Not All Debt is Bad

Since credit plays such as important role in many financial decisions, debt is not always a bad thing. It can show that you’re responsible and you can manage your finances. Credit rating is used for renting apartments, getting insurance and even being hired at certain jobs. Your credit says a lot about your character, which is why it is so important.

What If You Can’t Handle Debt?

If you struggle to get out of debt only to fall back into the same trap, you may not be able to take on debt and manage it responsibly now. The key is not to write it off forever, but rather to learn how to change your habits. You can find classes and seminars that teach you how to handle money and credit without letting it ruin your life.

In the end, the answer is different for everyone on whether they should avoid debt or be willing to take some on. One answer that remains the same is to never take on more debt than you can handle.

Newest Answers

Get a Better Credit Score in 2017

January 22nd, 2018 | Author:
h

[I]f you have a goal to improve your credit score for the new year, you need to set up steps to help you achieve this goal. For many, they read all kinds of information about how to get a good credit score, and it can be overwhelming. Sometimes, it can sound so easy but not […]

Continue Reading »

Why You Need to Check All Three Credit Reports

January 19th, 2018 | Author:
h

[T]here are three major credit reporting agencies: Experian, Equifax and TransUnion. All of them provide a credit report which lists your personal information and credit accounts. You can get one report for free each year or purchase extra reports through the agency sites. Many people just get one credit report, but you really should get […]

Continue Reading »

What is the Right Amount for a Credit Limit?

January 18th, 2018 | Author:
h

[A]s you get credit cards, you will notice they give you a credit limit. This is the maximum amount you can spend on the card without paying some of it off first. Credit card companies often increase your credit limit as you prove responsible handling the amount you have. You may wonder if more credit […]

Continue Reading »

Buying a Car with Bad Credit

January 12th, 2018 | Author:
h

[I]f you have bad credit, it can be difficult to qualify for a car loan. However, it’s not impossible. Before you go out and apply for money to purchase a vehicle, there are some things you should know. Check Your Credit Before you fill out any applications for car loans, you need to take a […]

Continue Reading »

What Does No Credit Mean?

January 10th, 2018 | Author:
h

[M]any people hear that they have bad credit, which means they haven’t always been responsible with their credit accounts. However, it is another situation entirely when a person is told they have no credit. You may wonder how that’s possible and what it really means for your future. No Credit Doesn’t Mean Never Any Credit […]

Continue Reading »

What You Need to Know about TransUnion

January 8th, 2018 | Author:
h

[T]ransUnion is one of the three credit bureaus which stores information about consumers and their credit history. It provides this information to creditors and to consumers. TransUnion was founded in 1968, and it now has more than 200 offices through the US and the world. How TransUnion is Different TransUnion is similar to the other […]

Continue Reading »

What You Should Know about Equifax

January 5th, 2018 | Author:
h

[E]quifax is one of the three major credit reporting agencies which provides information used on your credit report. It has a credit score which will impact your ability to get approved for new credit. All of these agencies aren’t the same, so here is some information you should know about Equifax. Equifax is headquartered out […]

Continue Reading »