Credit: Good or Bad
With my friends, both online and offline, the common saying we have is “who has no debt, even the rich has.” Yes! Everybody has debt nowadays. We all need to borrow money in one way or the other. When emergency situation comes, we borrow money from our friends, relatives or even apply for a cash advance loan to credit institutions.So, the question is, when do we consider credit as bad? Well, there are many situations that we consider credit as bad. When a sale is going on and you go impulse buying using a credit card that is bad. We you buy something through credit and beyond your income capacity that is bad. So anything that you buy or spend using credit that is not an immediate need or is just for leisure beyond what you can is generally bad.
Now, when do you borrow? According to Howard R. Dayton in the book “Your Money – Frustration or Freedom,” money should only be borrowed for the following four items: homes, business, education, or certain kinds of investments. So, to make it short, you only need to borrow money if you are going to spend it to income producing assets and of course, when emergency needs arises such accidents or unexpected needs.
So credit is neither good or bad, it actually depends on how the person involves use it.
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