What Debt Is Good And What Debt Is Bad?

San Diego Bankruptcy Attorney – Each and every one of us has had the momentary lapse of self-control and put something on our credit card that we shouldn’t have. Maybe you spent all you money shopping or partying and now you have to buy all your food on a credit card. This is alright if you understand that credit cards are not free money and you have to be responsible or you will be contacting a San Diego Bankruptcy Lawyer. Credit card debt can be useful if you mange it properly. Also, it can give you a little breathing room, say, between paychecks to catch up on life’s necessities.

As San Diego Bankruptcy Lawyers, we advise clients to take an inventory on the types of debt they carry. Things like home loans and car loans are easy to apply to your budget and are really necessary to carry on every day life. Also, they are for most people necessary debt. Very few of us have cash on hand to pay for a home and/or new car. On the other hand, one has to be sure not to push the financial limits and extend yourself beyond your means. If these large debt items are handled judiciously and responsibly they are considered good debt.

The bottom line is you MUST be diligent in establishing good credit and be consistent with your obligations to repay. Don’t be lured into the trap of credit cards and short term debt unless you have a solid plan for repayment. While we counsel people from San Diego all the time on the benefits of bankruptcy protection we don’t advocate people being irresponsible. Debt can be a positive thing that ultimately leads you to greater financial freedom.

We at the Law Office of Harold D. Thompson are Escondido Bankruptcy Attorneys dedicated to helping you get out of financial distress. If your debts are piling up and you are looking for a “fresh start” call a North County San Diego Bankruptcy Lawyer that will fight for your rights. Call us TODAY at 619.615.0767 or visit one of our two websites at www.ThompsonLawSD.com or www.MySanDiegoBankruptcy.com

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  4. Bankruptcy Can Give You A Frest Start In 2010
  5. How Will New Credit Card Rules Effect Filing Bankruptcy
One Response to What Debt Is Good And What Debt Is Bad?
  1. [...] Diego Bankruptcy Debt Relief Lawyer – Under the former debt relief Bankruptcy Act, as a rule of thumb, if the bankruptcy debtor kept the property, the San Diego debtor also kept [...]

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