Home Mortgage – Part 1

It is important to understand what the major forms of debt are so that you can decide which ones need to be paid off as quickly as possible and in order to avoid getting deeply in debt again in the future. We also need to understand which ones are good debts in that they can actually help us and which ones only hurt us in the long run. For instance, high balances on your charge cards are bad debts because they do not help you at all and can actually hurt you if you need to apply for something like a car loan. But a home mortgage can be a good debt because you need the interest you pay each year to help offset what you will owe the IRS for income taxes. We will explain the good and bad of each type.