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Do You Know The Types of Debt?

Everyone must have a reason why they tend to choose to owe, either for personal needs or to develop a business. There are many ways you can get money from friends, friends, banks, or agencies that provide lending services, both for loans without collateral and with collateral. But the best way to earn money quickly is to use Paying Off Mortgage Calculator.

Well, if money has been received and used for the needs, now let’s think, how to make the debt can be paid in order not to mount? Before discussing how to pay it off, it’s good you know first what kind of debt you have.

Consumer debt
This is the kind of debt that is used only for consumptive purposes only, does not produce anything, or the added value is less than the debt burden to pay, such as installments to meet lifestyle needs, sophisticated gadgets, TV, Refrigerator, car, and so on.

Productive Debt
Productive debt is debt that aims to create value-added income. The results obtained from asset goods must be greater than the burden of debt that arises, such as buying land, gold, goods for business capital, or to pay school fees. Why is the debt to pay for school in the form of productive debt? Because with this, knowledge will be obtained this in the future can be used to support career and office position.