The Complete Idiot's Guide to Getting Out of Debt

Chapter 2

Long-Term Debt

In This Chapter

◆ Understanding the risks of long-term debt

◆ Dream homes and nightmare mortgages

◆ Fixed-rate mortgages, adjustable-rate mortgages, and more

◆ Studying up on student loans

 

There are certain purchases and costs in life that most people would not be able to afford, if it were not for the use of debt and loans. For example, no amount of saving would likely get you the funds you need to purchase a home or pay for a college education with cash. Using loans and debt to acquire either of these things can often be considered a “good debt” because it is for something that creates or increases your net worth.

Because of the high cost of these things (often hundreds of thousands of dollars), the repayment of these ...