Myth #4: “Having a Debt is Bad, No Matter What”
Getting caught in a debt trap and paying interest for years on end is something that no one wants to go through, but it does not mean that you should not go into debt at all. There are certain cases where going into debt might actually be beneficial for you. For instance, if you wish to pursue college, you may have to obtain a federal student loan, which typically have low interest rates. In many cases, the interest you pay can also be deducted from your taxes. Considering the fact that a college degree can open the door to better, higher-paying job opportunities, a degree is vital for most people. Similarly, if you have a steady source of income and have saved up enough money to make the 20% to 30% down payment, usually necessary to obtain a decent interest rate, buying a house might be a worthwhile idea.
