Can You Have Good Debt? | Debt Consolidation Loans

Can You Have Good Debt?

Is there such a thing as good debt, bad debt? We explain some of the differences for you.

The widely accepted assumption across society is that debt is a bad thing. There’s always discussion of toxic debt or a debt crisis that’s sweeping the nation. Although there are admittedly forms of debt that can be incredibly difficult to escape, you can often benefit from good debts. Here are a few ways you can make the most of debt without worrying.

Will it benefit you in the future

One primary feature of good debt is any that will, in the end, mean that you’re better off than you were before. The most common example of good debt is a mortgage. If it’s provided at an affordable rate, a mortgage lets you come out of repayments with a house that will almost certainly gain in value over time. In the long term, you’ll have profited from this debt, and it will give you a good home in the meantime. Similar good debts are student loans or small business loans, both of which improve your prospects in years to come and provide you with a big benefit going forward.

Is it affordable?

A significant amount of household debts are loans that are taken out in order to buy furniture or luxury items, which end up burdening you with high-interest rates. These are fundamentally bad debts, firstly because the moment the item leaves the shop it loses value. However, more importantly, these high-interest loans are designed to keep the debtor trapped for a long time to come. These often hurt the mental health and wellbeing of debtors and mean that anyone taking these loans out could be financially unstable for years to come.

Good debts have single, easy and consistent payments

Ultimately, the best debts to have are ones that benefit you and are easily paid off in a single monthly payment. This is a lot easier to manage than trying to keep track of several repayments at once. All of this can be managed with a Debt Consolidation Loan. This loan pulls all of your debts under one umbrella and makes repayments much easier than if they were scattered amongst multiple repayments.

If you think a Debt Consolidation Loan is right for you, get in touch or call on 0333 577 5626 to improve your financial situation with one easy monthly repayment.

We offer Debt Consolidation Loans for homeowners.

Our team is on hand to help with number of questions you may have.

If you are struggling with debt, please visit Money Advice Service for help and advice.

We are a broker, not a lender.

Visitors also read:

Barclays Bank are FinedPersonal Finance
December 16, 2020

Barclays Bank are Fined £26million Over Treatment of Customers Dealing with Debt

News just out that Barclays Bank have received incredible consequences over their treatment of customers is delighting many people that have and still are struggling with debt. In a first…
Seven Financial Facts About Yourself You Should Know | Debt Consolidation LoansGuides
March 3, 2021

Seven Financial Facts About Yourself You Should Know

Seven Financial Facts About Yourself You Should Know Do you know all the facts about your finances? Could you reel off numbers if prompted? In personal finance ignorance is expensive…
Is a debt consolidation loan right for me | Debt Consolidation LoansDebt Consolidation
September 1, 2020

Is a debt consolidation loan right for me

Lots of us experience debt at some point in our lives. In fact, over half of UK adults went into 2020 with personal debt, a number which is sure to…
What Are County Court Judgments | Debt Consolidation LoansGuides
August 27, 2015

What Are County Court Judgments

Defining County Court Judgments If you have a County Court Judgment, or CCJ, against you, you may find it harder to get credit.  A CCJ is issued (in England, Wales and…
Arrears on Secured Loans or Second Mortgages; What Happens Next? | Debt Consolidation LoansDebt
September 18, 2019

Arrears on Secured Loans or Second Mortgages; What Happens Next?

Arrears on Secured Loans A secured loan is when a debt is connected to an asset. The loans are most commonly to linked to the borrower's property, and so you…
Fast debt consolidation loansDebt Consolidation
September 2, 2020

Can anyone apply for a debt consolidation loan

If you're interested in applying for debt consolidation loans, you might worry there are constraints upon who can apply for one. The reality is, however, that anyone can apply for…

Leave a Reply

twelve − 12 =