Being debt free is the ultimate financial goal for most people. There are many articles advising us how to get out of debt, that we may automatically assume that debt is a bad thing. However, not all borrowing is bad.
There are many occasions when debt can actually be a good thing, here are a few examples.
1. Buying a home
Many people cannot afford to buy a house without borrowing. A mortgage is a big debt, but it is a better financial proposition than renting. Getting a mortgage is like having an investment for the future. It offers the prospective of living debt free in 25-30 years. Furthermore, because it is secured against the value of your house, the interest rate is likely to be relatively low.
Carefully consider how much you can afford to put…