Taking debts isn’t necessarily bad; some are good or even necessary debts. Here are some of the debts which are reasonable enough that it’s okay for you to take them:
- Higher education (student loan) – Getting a college degree can land you to decent income-earning jobs. So, while this debt can burden you for some time, the pay-off is reasonable – a good job that can pay back the loans. Just choose your degree wisely; degrees with less marketable skills won’t land you in good and stable jobs.
- Housing – If your finances are capable to pay the house loan, but not enough to pay a house in lump sum, it’s reasonable to take a housing loan. You get two things in return: an asset and, well, a house! However, this shouldn’t be done out of mere wants or luxury. If you loaned for a beachside house, but can even barely pay it, that’s not a reasonable and good loan!
- Investments – Loaning for a business or other investments? That’s a very reasonable debt! Just keep in mind that you could lose your bets, so have some fallback plan prepared in case things went south.
- Transportation – If you really need a car, there’s nothing wrong with taking an auto loan. That car can even help you with your job – the debt eventually paying itself off. But again, loan out of necessity or profitability, not merely out of luxury.
If things really got worse, rest assured that a bankruptcy lawyer can help you with your case!