We're 100% sure interest rates are going up at some point. And they have gone up 2% in the last year. No one can say they didn’t know! If you didn’t until you read this blog then you do now. If you know that the same dollar you borrow today is guaranteed to be more expensive to pay back in the future, why wouldn’t pay it back now? Or as fast as you can.
Did you know there's good debt and bad debt? Good debt would be investment debt like your mortgage or education. Something that, over time, will serve you well and advance your financial situation. Bad debt is spending money you don’t have to satisfy a perceived need that is just a want (trying to keep up with the Jones).
We're in a historical time where interest rates are at an all time low. Or should I say we were? The average consumer may or may not understand how interest rates impact them. We hear about it, but do you know how it affects you? The cost to borrow money was almost nothing in the last several years. Here's an example: You borrow $1000 and the interest rate is 2%.
DEBT PART 1
A four letter word! But why?