Debt is typically considered a four-letter word when it comes to personal finance. But there are moments when going into debt can be a good idea. How? It depends on a few factors, including the interest rate you’re paying on the debt. If you have a debt that you’re paying 5% interest on, many financial experts advise that you could earn more by investing the money rather than use it to pay off the debt. Note: You should still make your regular payments — we’re talking about the additional money you’d use to pay off a debt faster. And yes, there are plenty of life events for which you should not go into debt , but there are good reasons to go into debt — and ways to keep from going too far. Here’s what you need to know. 4 Life Events It’s OK to Go Into Debt For Here are four life events when debt might not only be necessary but a good thing. 1. When You Take Out a Mortgage If you have a quarter of a million dollars in cash hiding unde...
4 Times When It’s OK to Go Into Debt — And How to Avoid Too Much