Many people, even so-called consultants, will tell you that there is “good debt” and “bad debt.” Wrong! Please don’t buy into the “good debt” / “bad debt” discourse. ALL debt is bad!

Yes, at times we are swayed into a purchase because we don’t have the cash, but that does not make the debt good! The only debt that even comes close to making some short-term sense is a home mortgage.

If you cannot make the payments on a 15-year mortgage however, you are probably buying too much house. My recommendation is to limit your home mortgage to 15 years and then do everything in your power to shorten that debt period by making extra payments toward your principle balance.

In your opinion is there any “good” debt? Your comments appreciated!

Content © Rich Brott, 2011

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