August 16, 2018

What Is The Difference?

Borrowing money to enhance your personal wealth or education constitutes good debt or “constructive debt”.  A mortgage, RRSP loans and student loans fall into this category.  This type of debt enhances your lifestyle and career satisfaction. Almost anyone can get a credit card whether it is solicited or unsolicited.  This type of debt is bad debt and considered “destructive debt.”  You can recognize it by applying the following four criteria: It is incurred for consumption purposes.  The money is borrowed to purchase goods or services, not for business, education or investing purposes It carries a high interest rate Servicing the…

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