Education Level: Beginner
In this article we are going to explore some of the main types of debt that are offered to consumers and what the best uses of debt can be. We are often trained to believe that debt is bad and that, if possible, we should have zero debt. While having zero debt allows for peace of mind and an easier lifestyle, it is not necessarily attainable for most, and the reality is that not all debt is bad. Obtaining debt is much like gaining trust, it starts off small and incrementally gets larger as time progresses and more trust is built.
The largest amount of debt that most individuals will have in their lifetime is probably a mortgage. A mortgage is a term loan that allows an individual to purchase and own a home, using a fraction of the purchase price as the down payment. Financial institutions lend out mortgages to individuals and will use the physical house as collateral against the loan. This means that if the individual purchasing the home suddenly cannot make the mortgage payments or defaults on the loan, then the bank can repossess the property.
In this article we are going to explore some of the main types of debt that are offered to consumers and what the best uses of debt can be. We are often trained to believe that debt is bad and that, if possible, we should have zero debt. While having zero debt allows for peace of mind and an easier lifestyle, it is not necessarily attainable for most, and the reality is that not all debt is bad. Obtaining debt is much like gaining trust, it starts off small and incrementally gets larger as time progresses and more trust is built.
The largest amount of debt that most individuals will have in their lifetime is probably a mortgage. A mortgage is a term loan that allows an individual to purchase and own a home, using a fraction of the purchase price as the down payment. Financial institutions lend out mortgages to individuals and will use the physical house as collateral against the loan. This means that if the individual purchasing the home suddenly cannot make the mortgage payments or defaults on the loan, then the bank can repossess the property.
Saving for young adults and professionals can be challenging, especially in an age where wages are barely keeping up with higher rent and real estate prices. It can be especially tough if one is accustomed to an easier lifestyle under a care-takers roof with much fewer bills to pay. For many young professionals, it may seem like a battle against many odds.
Ellen Roseman interviews Stella Papadopoulos, author of I’m Getting Divorced Where Do I Start? about what she considers important steps to be taken into account when considering divorce.
In the 13th Episode of the MoneySaver Podcast, we talk with Jessica Moorhouse, host of the Mo'Money Podcast, blogger and millennial expert about the most pressing issues on millennial minds right now. We touch on topics about home ownership, investing, retirement and side hustles.
"Getting Control of Your Cash Flow Now and Forever"Part #2
with Alan MacDonald, CFA and Canadian MoneySaver contributing editor.