Business
This is the second post in our series “5 Financial Mistakes You’re Making Now”. Mistake #2: Taking On Too Much Bad DebtThere is good debt and bad debt. Mortgages can be good debt - everyone needs a roof over their heads and having a mortgage provides that. But taking on a mortgage that causes someone to live beyond their means is bad debt. Credit cards are usually considered bad debt because of the interest rates that are associated with them. Making only minimum payments, it might take 24 years to fully pay off a purchase along the interest - that’s bad debt. Navigating good debt and bad debt typically comes down to “wants vs. needs”. Deciding how much of a house you need vs. how much of a house do you want can be a big decision filled with lots of bias, opinions, and emotions, so talking with a financial advisor can offer an impartial third-party expert opinion that also takes into account your financial plan and future goals. If you’d like to create a financial plan, free of charge, please contact me at mike.wegener@raymondjames.com.