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GOOD DEBT AND BAD DEBT
- By John Kitsco
- Published 11/15/2012
- Changing Behavior
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How much do you plan to spend at Christmas? Just remember, there are those who will not enjoy the happy season, but instead sit in a lonesome hotel room or be alone in a nursing home, or have to do
shift work as a police officer or doctor. Yet, just about everyone, whether they enjoy Christmas or not will still be faced with debt. Its a major concern, yet necessary. Debt builds highways and
creates work. Debt is needed by way of a mortgage to provide most of us with a home or business. Just depending on how that debt is managed will usually be an indicator of whether we have a happy new year to look forward to - or not. So I repeat the question: How much do you plan to spend at Christmas? Or perhaps you have not even thought about it. Heck, the credit card has room. Why not go for broke? Really? What about the rainy day money (if there is any) or the car repair, or that simple issue of groceries and utilities. What we spend might create a problem for those who pay rent or need to make a payment on a mortgage.
So I simply ask that question as a sort of excercise
for each of us to have in the back of our mind what we can afford. Do you not think economists and accountants have similar worries- perhaps on a bigger scale. Good Debt, being the one that provides us with a roof and a car to drive. But some of us driving a cadillac would likely do better with a volkswagon. Get the piccture?
Our national debt here in the great white north
(Canada) has gone another $5billion to a grand total of some $26 billion and growing daily.But I am certain our political leaders don't lose sleep because its after all, a world problem. Maybe if we close our eyes it shall all go away....? Ya, right!
Bad debt might be that car-load of gifts you absolutely did not have to buy for Christmas. I thought you were going to save some of those dollars for your rent or mortgage or to pay down the fuel bill on the cadillac? But hey, its Christmas
and who is counting?! Well, the clock is ticking, and the word DEBT seems to be in neon lights outside most of our windows, unless we prefer to keep the blinds shut...!? But sooner or later, just as we need to deal with a few bills, so does the Government and other big and small nations of the world - we need to pull together and get ourselves out of a mess...its called reduced spending, its called saving for a rainy day....and most of all its called being frugal for the sake of our very survival!
shift work as a police officer or doctor. Yet, just about everyone, whether they enjoy Christmas or not will still be faced with debt. Its a major concern, yet necessary. Debt builds highways and
creates work. Debt is needed by way of a mortgage to provide most of us with a home or business. Just depending on how that debt is managed will usually be an indicator of whether we have a happy new year to look forward to - or not. So I repeat the question: How much do you plan to spend at Christmas? Or perhaps you have not even thought about it. Heck, the credit card has room. Why not go for broke? Really? What about the rainy day money (if there is any) or the car repair, or that simple issue of groceries and utilities. What we spend might create a problem for those who pay rent or need to make a payment on a mortgage.
So I simply ask that question as a sort of excercise
for each of us to have in the back of our mind what we can afford. Do you not think economists and accountants have similar worries- perhaps on a bigger scale. Good Debt, being the one that provides us with a roof and a car to drive. But some of us driving a cadillac would likely do better with a volkswagon. Get the piccture?
Our national debt here in the great white north
(Canada) has gone another $5billion to a grand total of some $26 billion and growing daily.But I am certain our political leaders don't lose sleep because its after all, a world problem. Maybe if we close our eyes it shall all go away....? Ya, right!
Bad debt might be that car-load of gifts you absolutely did not have to buy for Christmas. I thought you were going to save some of those dollars for your rent or mortgage or to pay down the fuel bill on the cadillac? But hey, its Christmas
and who is counting?! Well, the clock is ticking, and the word DEBT seems to be in neon lights outside most of our windows, unless we prefer to keep the blinds shut...!? But sooner or later, just as we need to deal with a few bills, so does the Government and other big and small nations of the world - we need to pull together and get ourselves out of a mess...its called reduced spending, its called saving for a rainy day....and most of all its called being frugal for the sake of our very survival!
