The Reality Of Good Debt: Managing Credit Advice From A Victoria 4 Pillars Debt Consultant
A very common misconception for many clients that seek assistance from a 4 Pillars debt consultant is that all debt is bad and should be avoided. In reality, some types of debt are not harmful, and, when considered as part of the total financial picture, they can actually be beneficial to an individual.
Of course, like anything, even good debt can become problematic. The key is to have a plan, understand the short and long term impact of debt, and understand any concerns with taking on specific types of debt.
A good guideline proposed by our experienced 4 Pillars debt consultant is to consider debt in terms of how it is going to either add to your future options or reduce your future options. Good debt adds, unhealthy or unnecessary debt is always going to subtract.
Secured Credit Cards
For those rebuilding credit, our 4 Pillars debt consultant may recommend a secured credit card. This is a card that required the individual to provide collateral, which is held by the credit card company. This is typically less than $500, and it protects the creditor from default on payments by the cardholder.
Over time, by using the card and paying it off, you can build your credit score. Later on, with a higher score, you can move to a traditional credit card once you have developed smart use habits.
Student Loans
Taking out a student loan in Victoria to prepare yourself for a better paying career can be a good an investment in your future. Evaluating the job market, considering the options upon graduation, and choosing an educational track that is preparing you for the future is always critical before taking on student loans.
Home Mortgages
Investing in a home that is within your budget and income range is also a way of taking on good debt. Knowing what you can afford to pay on a mortgage, insurance, and other homeownership costs are critical in determining how much house to purchase.
Let the team at 4 Pillars Debt Consultants help you with your debt management and credit rebuilding. To find out more, give us a call at 866-690-3328.