It takes some time to learn how to responsibly manage debt. For many Connecticut residents, these lessons are learned over many years of experience. Debt management is a skill, and improving one’s knowledge on debt related matters makes it easier to make informed decisions and achieve one’s ultimate goals. In certain cases, borrowing money can further long-term financial goals. That is especially true for those who have gone through the personal bankruptcy process and are trying to rebuild a base of financial security.
An example lies in purchasing a vehicle. Very often, a sudden and unexpected accident or car repair creates an immediate need for a new set of wheels. The manner in which a new car is purchased can have a lasting financial impact.
If it’s possible to find a low interest auto loan with favorable terms, borrowing to purchase a new car can be a wise financial move. Doing so allows the borrower to keep any accumulated savings in place, and also establish a positive credit history. For many people who’ve come through bankruptcy and are struggling to rebuild their financial foundation, an auto loan can be a great place to begin.
For those in Connecticut who are evaluating various debt management options, understanding the pros and cons of debt is important. While taking on high levels of credit card or other unsecured debt is never a good idea, borrowing makes sense in certain circumstances. Bankruptcy creates a clean financial slate, and offer the opportunity to achieve a new level of stability.
Source: Forbes, “Is Debt The Devil? Financial Advisors Say ‘Not Always’“, Jeff Rose, Oct. 23, 2017