Unique Financial Advisors: Debt Management

Debt management is financial planning  101. Here is what you need to know. Hi,   my name is Vid Ponnapalli from Unique Financial  Advisers - let's get started. When you have debt,   not all debt is bad. There are good debts and  there there are bad debts. So, what are the   good debts? Suppose you have a mortgage on your  house that is roof on your head and that mortgage   will be at a low interest and the collateral for  the mortgage is only the house. So, that's a good   debt. Suppose you have a college Loan Federal Loan  with 0% while you're in college then that debt   is a good debt. So there are good debts and bad  debts. Mortgage, Federal college loans 0% are good   debts. Now what are the bad debts? The bad debts  are variable interest, credit card or personal   loan. All these high interest paying debts are bad  debts. Now, is there any debt you may ask me is   there any debt that is good as well as bad.

Funny  I said that but there is. Some clients have asked   me "can I take a loan from my 401k"? While I never  while I generally don't recommend to do that,   401k loan may be a good debt because you are  paying yourself the interest but it's a bad   debt because if you leave the company or if the  company lets you go you have to pay back that very   quickly. So as long as you identify your debts  as good debts, bad debts - what is good and bad   and how to navigate through that, you can manage  your debt pretty well. For more tips like this,   please subscribe to my YouTube channel  or follow me on social media. Thank you!.

As found on YouTube

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