**Best Advice do not borrow what you can not payback. If you are not sure you can afford it. Don't do it.

The debt will reflect back good points if you make on time payments and complete payments.

The debt will also reflect negatives if you miss payments and/or do not pay off debt in timely manner based on a agreed due date.

Your Answer----
It is only up to you if its going to be good or bad.

Debt: is~ unpaid due balances
Credit: is~ award of paid balances

If you are in debt you owe money.

If you pay you debts owed on time to complete you have earned Credit.

In Return this Credit will allow you to have opportunity to buy more expensive things in a pale scale without the hassle of not having all the money upfront.

You earn this Credit into a score over years which accumulate trust with large amounts of money from banks and loaners that only you can borrow because of a reputable background of pay offs' on time and in manner.

Chanaysk16

Employee

No, but if have hospital bills on your credit report its illegal to be on your report. Especially, if no one tried to get in contact with you. Any debt on your credit report os often to be illegal.

ReTruth

Employee

the system is rigged doesnt matter what you think. I was put in default atudent loan 2007. They have helped thousand except me. It is 2019 I have not seen a Tax Return in 12 years. There results lied and said now Im in default in 2015. According to law its suppose to stop after 7 years. But they lied and restarted it. PAY FULL ONLY FOR ALL THINGS **bleep** CREDIT **bleep** A BANK **bleep** A LOAN TRUST ME DONT SUFFER LIKE ME

Anonymous

Why do you think it should stop after 7 years? Getting a student loan discharged is extremely difficult. See this article:

https://www.forbes.com/sites/zackfriedman/2018/06/18/bankruptcy-student-loans/#6cc61dc44f8b

ReTruth

Employee

LOOK AT HELP ON TOPIC ON IRS IT SAYS IT. PLUS THEY HAVE TOOK OVER THE LOAN AMOUNT. THINK. IF I TOOK 12 YEARS OF YOUR TAX REFUND. SAYING YOU 10,000. BUT YOUR REFUNDS OVER 12 YEARS EQUAL MORE... DO YOU WANT TO BE IN THIS POSITION? I WILL GLADLY TRADE.

DONT GET A LOAN

Exlacop

Employee

Debt is definately bad. All debt is bad. But if your goal is a good credit score do 1 of the following. Have a trusted family member with open good credit add you as an authized user on 1 of their credit cards with good standing and low balance high limit. Or 2. Get a credit card and never use more than 9% of the limit always have between 1 and 9% used and always pay more than the minimum. Dont pay off to $0. Example $1000 limit card. Use between $10 & $90. If bill is $17 a month send $20 or $25. When paid off buy again. This will ensure max score every time.

tlhawthorne11

Employee

Not all debt is bad.

With regards to credit cards, paying your statement balance each cycle will boost your credit rating by allowing your credit limit to increase. The percentage of your credit limit usage greatly impacts your score.

Home and auto loans with on time payments will also body your credit score. I'm my opinion an auto loan should never be greater than 50% of your annual income. Home loans should be no more than 3 times your annual income.

nbob651

I am just an average schmuck and I really don’t have any education for business - I have been around a while so here goes. I believe a mortgage loan for a home is well within the good loan category. A home is one of the best investments still. I purchased my home on a half acre plot of ground for $125,000 15 years ago and now it appraises for $289,000. That seems to have been a great investment. I also believe you should never buy a brand new car on credit. The moment you drive off the lot it drops in value. Yet if you purchase a two year old car the investment seems to hold better. I also believe investing in an education is well worth putting at least some of the cost on credit for your degree is still money in the bank. Your income will be much higher with a degree than without. This will sound impossible but between my 1/2 tuition and my teaching assistantship my Masters degree cost me about $5,000 on credit. I felt blessed several times over when it came to retiring because my Masters degree greatly improved my retirement income making my $5,000 investment feel like nothing. There is my two bits.

Ovey

Check out a guy named Dave Ramsey on podcast, YouTube, or his website. He's been a financial coach for a long time and has helped literally hundreds of thousands of people find financial peace. I've learned a lot from him personally and would definitely recommend getting his book "The total money makeover." Good luck sir!

Jewell 11

Regarding is all debt bad, what is considered good debt other than homeowner ship.

DaveT315

Employee

In general, debt used to purchase income generating assets is good debt. Debt used to purchase consumable items, or depreciating assets is bad debt. For example, debt used to buy an investment rental property that generates a positive cash flow is good debt. Debt used to buy a car, pay for groceries, or a vacation is bad debt.

Debt used to pay for education leading to a better paying job, career advancement and a greater income is considered good debt. Student loans for a degree in a field with no job opportunity or a very low paying job is probably bad debt. What kind of job will pay a philosophy major enough to live on and also pay off the student loans? The debt incurred to obtain a PhD is probably bad debt if you end up being a cab driver.

The debt used to purchase a primary residence is bad debt but necessary. A primary residence does not generate any income, but the debt service is a liability until the property is paid off. Now you may argue that the primary residence appreciates and you realize a profit (income) when you sell. In principle, I agree, but appreciation is not guaranteed and usually slow when it happens. If you hold the property long enough, you should realize some appreciation but consider that you are paying interest on your loan while the property is appreciating. If you hold the property long enough you might break even. For example, if the house you paid $100K for 30 years ago is now worth $250K you see this as a potential $150K profit when you sell. However, consider that you paid a total of $250K in principal and interest for 30 years to retire your loan, You just break even at best. There are a few real estate markets where this is not the case, but for most real estate markets, home ownership iis more expensive than renting -- especially if you sell and move in every few years.

Polno

Employee

In general debt used in any form is bad. Buying a house, a car, credit cards, opening a business. It just never adds up. Do the math. A mortgage is going to cost way more than the house is worth. A car will depriciate. A credit card.... go ask a few millionaires if the have any. And then ask them how they became millionaires. I know you think you need that 7 dollar coffee in the morning but you don't. I know you think you need to buy new clothes for your kids for school but there are consingment sales with ralph Lauren stuff. I outfit my child whos 3 for 40 bucks a year. I set money into my 401k faithfully. I have saved an emergency fund for when things happen.im working on saving for a house in full. Averege income in America per person is 31000. Setting 10% aside for 401k leaves 27000. Minus bills and such( car payment is not a bill , you dont make one) you set up a budget and stick to it. You will save money. You just have to figure out whats an actually necessity and whats not. And yes i allow myself fun money. No debt is good. Im not by anymeans a bible thumper but one passage sticks out. THE BORROWER IS SLAVE TO THE LENDER.

Waynejuntunen

Taking out a mortgage is not a bad use of credit. However car loans are a huge waste of money. Car loans are a huge waste of money, live within your means. I made 32k a few years ago (not very much) I saved and saved and bought a 2k car. The following year I sold it for 1.9k and had planned for another car so I had already saved 2.5k. I was able to buy a 4k car. Needless to say my newest car I have ever owned was payed for with cash for a total of 8k. This following year I'm going to sale it an use my car fund of 6k to buy a 14k car. Get away from the red face child thing of wanting it now, now, now and save! Credit is than irrelevant if you use cash.