Freezing in NH

Getting into debt can be a problem if you don’t know how you’re going to get out.  Debt can be a useful tool if you’re careful.  In general I think Loans are useful if you have a plan to use the money to do something that either generates more money or reduces your expenses.  I don’t think loans for things like vacations and eating out are a good thing.

Taking out a loan to pay for a college education makes sense because it means you’ll earn substatially more money over your entire lifespan, so it’s an investment in most people’s biggest money making asset – their career. 

A loan for buying real estate makes some sense as well.  Make sure you have a plan for how you’re going to make the payments.  Don’t buy a huge house because you want it if you can’t afford it (just open the paper to see how bad an idea that is).  Buying real estate for an investment can also make sense as long as you’ve fully researched it.  If you want to buy rental property, you should buy in an area that you know.  To learn more about the area and about how much work rental property is, join a landlord’s association before you buy. You can use a Homeowner Loan or home equity loan to get cash from your existing house.

Starting or expanding a business can be another good reason to take out a loan.  A small side business can provide a cushion in case of layoffs at your primary job and it allows you to try out a business before giving up the steady paycheck.  Unsecured Loans provide a way to get money without putting your house at risk.

This entry was posted on Tuesday, December 11th, 2007 at 6:37 pm and is filed under Uncategorized. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.