A personal finance blog dedicated discussing such topics as budgeting, asset allocation, 401K, IRA, cash flow, insurance, financial planning, portfolio management, and other areas in personal finance.


Friday, February 25, 2005

Is There Such a Thing as Good Debt?

My friend, Michael over at the It's Your Money blog posted about a book that just came out called Good Debt, Bad Debt, by Jon Hanson. I haven't read the book yet, but it got me to thinking, is there really such a thing as good debt?

From a clearly economic viewpoint, I would have to say that yes, there really is good debt. What is good debt? Well, a mortgage is good debt (as long as you don't take on more than you can handle). In fact, I am of the opinion that if the interest rate is low enough, a person should not hurry to pay off the loan. It doesn't make sense to me for a person pay off a low interest loan with money that could be invested at a higher rate of return. (I posted about this back in October)

Anyway, that's my two cents worth.