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Are Car Loans “Good” Debt?

art of the personal essay

p>I’m often intrigued by the way people classify their debt obligations. For some, a mortgage is the only thing they’ll allow to be listed under good debts. For others its a much wider array of things, including student loans and yes, sometimes, car loans. The reasoning for this I suppose is that some things are simply a necessity, and sometimes you won’t be able to avoid taking on debt to provide things like housing or transportation.

For me, car loans are a necessary evil, but they don’t get listed under good debt. Interest rates on most car loans are typically fairly low, and getting a car loan with bad credit is possible if your credit score has been dinged in the past. Like other obligations though, these loans should be paid off with zealous tenacity. The sooner you are out of debt, the sooner you’ll have the freedom to do what you want and ensure financial independence as a part of your future.

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