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.
In the end, as with any debt, handle it properly so you won’t spiral down to bankruptcy.
If things really got worse, rest assured that a bankruptcy lawyer can help you with your case!