Good debt vs. bad debt

Debt is becoming an increasingly pressing issue in Canada. In fact, it is estimated that household debt in Canada has soared to $1.5 trillion. With the throngs of financial resources out there today, it isn’t difficult to understand why so many people are confused and overwhelmed when it comes to handling their cash. The biggest problem most Canadians have is that they don’t know the difference between bad debt and good debt.

All consumer debt is bad debt! So, what is consumer debt, exactly? Consumer debt is any debt incurred for personal reasons (as opposed to business needs). A buy-now-pay-later purchase would be considered bad debt. That being said, it is a good idea to avoid debts like lines of credit and credit card debt.

Good debt is any debt that builds or gives you the opportunity to build your asset base in the future. For example, student loans are considered good debts because it can raise your income potential. Other examples of good debt include mortgages, investment loans and even car loans.

Car loans are considered good debt for a number of reasons. First of all, owning a car expands your potential for greater financial gain. When you own a car, you can drive to work, opening up your availability and earning potential. In addition to possibly increasing your income, car loans can also help you build up good credit. For people with bad credit, car loans can present a great way to boost their financial reputation over the time it takes them to pay off their balance.

If you’ve had bad credit car loans in the past, you can count on Leggat Chevrolet in Etobicoke, Ontario to give you a car loan that’s more affordable. Not only will you receive great service and advice from the sales staff at LeggatChev, but you’ll also get helpful financial assistance from the professionals at our in-house leasing company. In order for our financing experts to have a thorough understanding of your financial situation, you can meet with them in person to discuss your best financing options. More importantly, the leasing professionals at Leggat Chevrolet in Rexdale are friendly and qualified to handle your credit situation, so you won’t feel embarrassed or anxious. Even if you’ve had a bad credit car loan, our in-house leasing company can help. We have programs specially developed for customers with bad car credit!

If you need to purchase a vehicle but you have bad car credit, visit Leggat Chevrolet today. With the help of our experienced sales staff you are sure to find a car that suits all of your needs. We have a wide selection of vehicles, from new Chevrolet cars to used Toyota cars, as well as a variety of car parts and accessories. For more information on Leggat Chevrolet, visit http://www.leggatchev.com/ today. You can also check out our Facebook page (“LeggatChev”) and Twitter feed (@LeggatChev).