Trillions in Debt
Americans now have $1.6 trillion in student loan debt!
Credit card debt is crushing most American households.
Vehicle debt has reached an all-time high for Americans
Most frequent questions and answers
This is highly debated between financial experts. Some advisers argue that all debt is bad, while some advisers would conclude that a mortgage and student loans can be “good” investments.
A secured debt is backed by collateral. For example, mortgages and car loans are “secured” by the house and car, but student loans are “unsecured” because there is nothing the debt holder can recoup upon default.
Interest rates are set by lenders, and they are based on the relative “riskiness” of the borrower. So, a riskier borrower will have a higher interest rate than a “safe” borrower. Having a better credit score will lower your interest rate paid.