keep[s] the cash in the budget liquid
Phoenix, AZ (PRWEB) April 03, 2017
National Debt Relief recently shared in an article published March 17, 2017 some of the reasons why debt is not always a bad thing. The article titled “3 Situations Where Debt Isn’t All Bad” takes a look at some of the situations wherein debt becomes a valuable tool in helping people achieve their financial goals.
The article starts off by pointing out that debt is not all bad and some consumers would find this hard to believe.This is because debt has been a prohibitive factor in the lives of most people. It often leads to consumers being forced to choose a high-paying yet stressful job over a low-paying yet fulfilling career. However, debt only starts to become a problem depending on how people react to it. When consumers start to become responsible with debt, it then becomes a positive thing for their finances.
The article starts off by explaining that debt can help consumers finance expensive investments such as buying a house. One thing it does is it helps keep the cash in the budget liquid rather than being tied up to the property. Paying for the house in cash could deplete the cash reserves in a family’s finances. This can put them in a predicament where they have a house but unable to meet other financial obligations.
This idea can also help people with their investments. The article explains that when consumers compare their interest rate on the mortgage with the potential return on some investments like the stock market, the latter could be higher. This means that they are able to save the difference over a period of time and grow it with compound interest.
The article also explains that responsible debt payments can have a positive effect on the credit score. It is no secret that the score is one important tool which financial lenders use to assess credit-worthiness of a person. The more consumers meet their debt payments, the bigger positive impact it has on their report and essentially, their credit score.
To read the full article, click https://www.nationaldebtrelief.com/situations-debt-not-bad/