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Wise debt or foolish debt?

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          🞛 This publication is a summary or evaluation of another publication 🞛 This publication contains editorial commentary or bias from the source
Devin and Rich are friends and business partners with one ongoing source of tension. They don't see eye to eye on debt. Rich is totally against it. Devin thinks it's fine—maybe even wise—in certain situations.
The article "Wise Debt or Foolish Debt" from MSN Money discusses the concept of good versus bad debt. It explains that not all debt is detrimental; some can be considered "wise" if it leads to long-term financial benefits or personal growth. Examples of wise debt include mortgages, which can build equity over time, and student loans, which might lead to higher income potential. Conversely, "foolish" debt often involves high interest rates with little to no long-term value, like credit card debt used for non-essential purchases or payday loans. The article advises readers to evaluate their debt based on its purpose, interest rates, and potential for appreciation or income generation. It also emphasizes the importance of managing debt wisely by understanding one's financial situation, planning for repayment, and avoiding unnecessary borrowing.

Read the Full MSN Article at:
[ https://www.msn.com/en-us/money/personalfinance/wise-debt-or-foolish-debt/ar-AA1wD7qj ]