“Good Debt” and “Bad Debt.” What’s the difference?

There is a real difference between good debt and bad debt!

When you borrow money to make a purchase that will last and has value it would be considered “good debt”. Two examples would be borrowing money for a mortgage, something that builds equity as the years go by or contributing to your RRSP.

All other types of borrowing would be considered to be “bad debt.” These types of debt would include borrowing to go on a vacation, or using your credit cards for purchases that you do not really “need” but you “want.”

Image courtesy of lendatease.com

Image courtesy of lendatease.com

Equifax has posted a great article to demonstrate the difference between good debt and bad debt  and how to manage it.

Here at MiMortgage, you will find a whole team of experienced mortgage agents to help you to get back on track!

Be proactive contact us today or apply now on-line with our secure mortgage app.

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