Selected debts deserve special attention, as the consequences of falling behind on them are particularly serious. For example, with certain types of debts, there may be a risk of losing an important asset, being evicted or even serving jail time.
These types of debts may include:
- A mortgage
- A car loan
- Rent or utility bills
- Medical bills and court- ordered child support and maintenance obligation
- Income taxes
- Student loans
Consumers concerned about their ability to keep up with their payments on high stake debt, should approach a consumer law attorney, in order to figure out a way to avoid a default. Consumers already in arrears and being threatened with a foreclosure, repossession, lawsuit, or some other serious legal action, should contact DebtBusters on 0861663328.
Good Debt / Bad Debt: What’s the Difference?
Consumers with serious debt problems may be surprised to hear that creditors do eventually want DebtBusters clients to use credit cards and take out loans again, once they are debt free, as owing money to creditors is not necessarily a bad thing.
Whether debt is good or bad depends on why you took on the debt in the first place, as well as how you manage it. It also depends on how much debt you have relative to your income because too much debt, even if you’re able to keep up with your payments, harms your credit history and brings down your credit score.
Why debt can be a good thing:
In many circumstances, going into debt can be a good thing. For example, consumers could spend their entire life trying to save up enough money to purchase a home and not succeed. Thus, a mortgage can be considered as a good thing, especially if the value of the home grows over time.
A car loan is another example of good debt because most people need a vehicle to get to and from work, and most can’t afford to purchase a car with cash. Debt is also good when it helps build wealth, such as borrowing money to purchase your home or rental property. Other debts, like getting a loan to make a home energy efficient to reduce energy bills can also help save money in the long run.