That would be have a happy new year, for the non-Hebrew speaking crowd. =)
While it is not the new year, 2014 yet… it is a new year for Jews around the world. With that, it is appopriate to tackle a question quite a few people have, and form resolutions around come January 1st… Debt.
Is having debt bad?
While most TV personalities and so called financial professionals would scream yes…. having debt is bad, the real answer is… it depends.
In reality, debt is a tool, a tool which companies around the world, and even governments around the world will use in the day to day operations. I would equate debt (and credit), to having a high performance car, or an off road vehicle. Give an 18 year old teen boy the keys to a new sports car, and it is inevitable that they will be coming home with multiple speeding tickets, meanwhile, give a 40 year old the keys to a brand new Chevy Corvette and it will likely never go 15 miles per hour over the posted speed limit, outside of private property or a race track.
Having credit as a tool, can give you the flexibility to more comfortably live your life, provide an extended safety net, and even give you a ton of perks, as long as you use it properly.
There are many forms for lending available, from fixed term loans for homes, student tuition, cars, etc, to open ended credit products such as personal lines of credit, credit cards, home equity loans and securities backed lines of credit. You can even lend money from more exotic sources such as 401k plans and life insurance. Ultimately, as with anything, there are great products out there, and there are bad products out there, but most of all, you MUST have a game plan on how to use it. Otherwise imagine locking in a chocolate lover at a Ghirardelli Chocolates store, it will not end well.
Over the next few weeks we will spend some time to look over the various credit products available, starting with Credit Cards.
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