THE MONEY WELL
Money & Personal Finance
THE MONEY WELL
Copyright @
Moneywell.co.uk 2006-2007
Money &
Debt Reduction
Moneywell.co.uk 2006-2007
Money &
Debt Reduction
About Us & This Site
We are independent, impartial observers of the financial problems that more and more people suffer because of overindulging in loans these days. Not always so impartial, we've been there too.
We aim to give you sensible advice to help you reduce the debt burden and hopefully, be happier and enjoy your life more. We do not give personal financial advice. If your situation demands specific consideration of your circumstances then you should consult a qualified professional.
We don't say all debt is bad though it's better to be without debts than with them. However, if you want to buy a house then most people find it essential to be able to borrow the money. That is acceptable but clearly you need to be able to repay the mortgage or it will just make you unhappy and even more debt-ridden.
Some debts are just plain bad debt though. If you buy a brand new car then the minute you drive it out of the showroom it has probably lost a third of it's cost. The debt, however, will be even greater than the car cost because all the interest will have been added on. That makes it a bad debt.
Generally speaking, if you will benefit in the long run through using a loan then it is good debt. For example:-
A loan to help you through university will, hopefully, mean you will earn far more over your lifetime than if you hadn't been able to go to university. So the loan is profitable.
The simplest rule is probably that if you don't really need a certain thing then it certainly isn't worth borrowing money to buy it.
We are independent, impartial observers of the financial problems that more and more people suffer because of overindulging in loans these days. Not always so impartial, we've been there too.
We aim to give you sensible advice to help you reduce the debt burden and hopefully, be happier and enjoy your life more. We do not give personal financial advice. If your situation demands specific consideration of your circumstances then you should consult a qualified professional.
We don't say all debt is bad though it's better to be without debts than with them. However, if you want to buy a house then most people find it essential to be able to borrow the money. That is acceptable but clearly you need to be able to repay the mortgage or it will just make you unhappy and even more debt-ridden.
Some debts are just plain bad debt though. If you buy a brand new car then the minute you drive it out of the showroom it has probably lost a third of it's cost. The debt, however, will be even greater than the car cost because all the interest will have been added on. That makes it a bad debt.
Generally speaking, if you will benefit in the long run through using a loan then it is good debt. For example:-
A loan to help you through university will, hopefully, mean you will earn far more over your lifetime than if you hadn't been able to go to university. So the loan is profitable.
The simplest rule is probably that if you don't really need a certain thing then it certainly isn't worth borrowing money to buy it.
We don't need to increase our goods as much as we need to scaledown our wants. Not wanting something is as good as possessing it. - Donald Horban