Daniel-Doyle-Pleasantville

Daniel Doyle Pleasantville Photographer Discusses The Importance Of Business Plans

Many people love photography and would like to go into business for themselves as photographers. But, the difference between those who are successful and those who simply end up in failure have a business plan in place. The reason is that you need to determine some very basic aspects of your business that will take some research so that you succeed. All of the best technique and striking photographs in the world will not help you if you are not able to decide upon your target market and basic pricing. These are elements in your business plan.

In order to determine the importance of a business plan and its key parts for a successful photography business, we spoke with Daniel Doyle Pleasantville. Doyle began his successful photography business in his studio in Queens, NY that focuses upon studio head shots of actors and musicians in New York as well as event photography. His event work spans concerts, weddings, families and children. He has made such a name for himself that he is now tutoring young photographers to follow in his footsteps. He majored in art at Ohio State University. Doyle is now opening a new studio in his home town of Pleasantville, Ohio. +

Daniel-Doyle-Pleasantville

Why a Business Plan?

According to Doyle, to succeed in the very competitive world of studio and event photography, excellent technique that grows and evolves is a prerequisite. But, one cannot succeed without a business plan as well. As Entrepreneur Magazine states, you have to know some foundational information, such as how much you should charge for your work and what niche you will pursue. If you don’t know such basic information, your business will likely be doomed to failure.

Key Details to Flesh Out in a Business Plan

Some of the key points in creating a business plan for a photography business are as follows:

Market Analysis:

If you fail to do the marketing analysis steps, you will likely fail to find the niche that you can profitably serve. As Entrepreneur Magazine stated, you have to first identify who are the targets for your products. Expert Photography explains that this is the stage where most businesses fail because they decide everyone is their market. You have to narrow down who is realistically going to buy your photographs for the price you will need to charge in order for you to make a profit and a living. It is too expensive to have “everyone” be your target market.

Are there enough of your target market customers in your area? For Daniel Doyle Pleasantville photographer, he first decided that his local market was too small for him to begin as a startup, so he made his business flower in a larger market area first, so he could get established. For example, if you have decided to do studio photography and portraits, your biggest target market in most areas will be families who have children, but Doyle was able to find entertainers in Queens who needed publicity head shots that were unique. This is what earned him a solid reputation in his area.

Products:

Here you will carefully delineate each type of product that you will carry as well as formats, such as digital and print and dpi resolutions. Are you offering prints, albums or files online?

The Competition:

Who is your competition, and how can you differentiate yourself from what they are offering? As Expert Photography suggests, you really don’t want to try to succeed by being the “low price leader.” Leave that for Walmart.

Marketing Strategies:

How do you get your name to clients?

Wedding photographers can work with bridal boutiques and hair salons. Portrait photographers, like Doyle, worked with entertainers who were trying to get a start in the industry. His unique head shots helped market his business to other entertainers through word of mouth. Commercial photographers pay for space in directories and work through production companies.

Operations Strategy:

Will you be able to work from home? Will you rent a studio when necessary? Do you already have all of the equipment you need, or will you rent some as needed?

Financials:

How will you pay for everything you need to operate your business for the first three startup years? Expert Photography suggests you need to have back-ups of everything for emergencies. Imagine if you were in the midst of a wedding shoot and your only camera body seized up on you.

SWOT and Timeline:

Do an analysis of your strengths, weaknesses, opportunities and threats. Create an action plan to address every part of this analysis over time as well as a timeline of how you will roll out your business.

Since photography is such an enjoyable hobby, there are many who would love to go into business for themselves in the field. As Daniel Doyle Pleasantville knows from his own personal experience and success as a photographer who has one successful studio and is opening a new one, a business plan that is fully fleshed out is the only way to be able to achieve success in the crowded field.

Trout Associates Financial Plan

Trout Associates Explain How Credit is Calculated

Some people may assume that only wealthy people can have good credit, but the truth is, a good credit score is available to anyone. Good credit is not the result of having a lot of money, it is the result of good financial habits and practices. In fact many people of very modest income have good credit, while many wealthy people have terrible credit.

HOW IS CREDIT CALCULATED?

Your credit score is like a final grade you might receive in school. Just like your grades in school, there are a number of different factors that determine your final grade, such as homework, tests, quizzes and special projects. Some factors, such as a mid-term or final exam, will carry more weight in determining your final grade than a single homework assignment. In fact, you may even be able to miss a few homework assignments and still get an A, if you do well enough in other areas to offset the damage the missed homework might cause.

The same is also true of your credit score. Some factors are more important than others and carry greater weight in determining your final score. For instance, if you have good credit overall, you may be able to make a late payment or two without significantly damaging your credit. If you credit is already poor, however, late payments can have a far greater impact.

Creditors will generally do more than just simply look at your credit score alone to determine your creditworthiness, the same way that colleges and universities will look at more than just your grades to determine if you are a good fit for their school. That being said, if your credit score is too low, creditors may not look any further. If your credit score is lower than they would like but still within an acceptable range, then they will often look at your overall credit file to determine where the lowered score is coming from. Some factors may influence their final decision more than others.

Here are the main factors that impact your credit score:

  • Payment history: If you have a good record of paying your bills on time, it will have a significant positive impact on your credit score. If you regularly miss payments or make late payments, however, that can seriously damage your credit score.
  • Debt to credit ratio: What creditors are looking for is how responsibly you manage credit. One good habit to have is to not always use all of the credit that is available to you. Conversely, however, if you already have too much available credit, other creditors may be wary of giving you more. A good rule of thumb is to never carry a balance worth more than 30% of your available credit.
  • Length of history: Everyone is going to have financial peaks and valleys. It’s fairly easy to pay your bills during peak times when money is plentiful, but what do you do when crisis hits and things get tight? The longer your credit history is, the more of an idea it gives creditors of how you handle credit over the long haul, not just in the short-term when things are good.
  • Types of credit: Different types of credit will have a different impact on your credit score. In addition, having a mix of various types of credit will also have an impact on your credit score. For instance, you may have $300,000 in total debt, but if $250,000 of it is a home loan, $30,000 of it is student loans, $19,000 of it is an auto loan and only $1,000 of it is credit card debt, that will generate a much better credit score than having only $100,000 in debt, but $30,000 of it is credit card debt.
  • Credit inquiries: When you apply for any type of credit, lenders will request a copy of your credit report. If they extend credit to you, it can take up to 30 days for it to show up on your credit report. Until then, other lenders don’t actually know if the first lender extended credit to you or not. For that reason, if a lender sees that another lender has recently requested a copy of your credit report, they will be less likely to extend you credit.



Having good credit is important for far more than just getting more credit. Your credit score can affect your insurance rates and even your ability to rent an apartment or other housing. Carrying too much debt will not only have a significant impact on your credit, but it can also make you vulnerable to financial collapse. Debt consolidation is one way to help you tackle your finances and get your debt under control. Trout Associates are debt experts that can help you explore a wide range of options to better manage your debt and get your finances back on track. Debt consolidation with Trout Associates can help you make one monthly payment. Not only will this help you avoid missed payments and costly late fees, but it can even help you pay down your debt faster.

Graylock Advisors Income

Graylock Advisors Shares Ways to Get out of Debt Quickly and Responsibly

Amid record high consumer confidence, the debt burden continues to weigh down many households in America. A State of Credit 2017 report unveiled by Experian shows the average American holds credit card debts amounting to $6,350 and non-mortgage debt of over $24,700. The non-mortgage debts are collateralized credit facilities such as car loans, commercial loans and personal loans. The average student loan has also been rising over the years and stood at a record $34,140 in 2017. The debt situation is worsened by reports showing people are spending much more than their monthly earnings. To bridge the gap, many are turning to new lines of credit.

Experts see the debt as an emotional rather than a rational problem. This is demonstrated by the continued practice of buying stuff one can ill afford. According to Financial Mentor, the top habitudes blamed for the rising debt problem include emotional spending, sense of entitlement, complacency, lack of plan and instant gratification. People with emotional spending problems are often tempted to use shopping as a route to escape boredom or relieve stress. The habit can easily cause bills to pile up, thereby making repayment untenable. Lack of a plan causes a disconnection between spending on one hand and earnings and savings on the other hand.

It also leaves the affected individual with no concrete budget, long term earning strategy or retirement plan. Complacency is an attitude that is widely blamed for causing debt escalation. An individual with this mentality believes he or she is already in debt so spending a little more wouldn’t make any big difference. Although the habit may keep you going for a few months, it may cause serious problems down the line such as increased charge offs, bankruptcy and foreclosure. The first step of getting out of debt is accepting you have a problem that needs urgent intervention. According to AARP, here are 6 ways to turn the corner when you are in debt:

Getting out of debt quickly and responsibly

1. Use savings to pay down large debts

It is safe to use part of your savings to pay the initial credit down payment, assuming your savings are at a level to justify this expense. This decision can go a long way to curtail the accruing interest normally associated with high interest debt. You will also get the money sitting idle in the bank to work for you.

2. Use your tax refund to pay debt

Instead of splurging your tax funds to satisfy short-term desires like going on a vacation or buying high value items, you could use the check to clear some of the crippling debts. Paying debts in a lump sum will ease your debt burden and make it easier to clear the remaining debt moving forward.

3. Increase your debt repayment percentages

If you are serious about offsetting your debt, consider setting aside about 15% of your paycheck or social security benefits on loan and credit card debt repayment. Making slightly larger repayments will help you offset the accruing interest and clear the debts quicker. Most credit card issuers usually request around 2% monthly debt repayment on the existing balance.

4. Learn to negotiate lower interest rates

This is a popular strategy for lessening the debt burden. Once you have negotiated for a lower interest rate, you need to strictly adhere to the agreed terms of repayments in order to maintain a good standing with your creditors. This will place you in the good books and earn you better terms of credit in the future.

5. Find ways to earn more

As you work on paying off your debt, you should consider new strategies to increase your income and clear debt in the shortest time possible. Some of the ways to do this include negotiating a pay raise with your employer and looking for a part time position or a side gig to boost earnings.

6. Use Statute of Limitation to your advantage

If you have old, charged off debts and debts you are not obligated to pay, you can use the Statute of Limitation to clear your credit history. Old debts will feature on your credit history for seven years or thereabout and will certainly limit your chances of getting credit or favorable loan terms in the future. Some states have set limits on the types of debts that debt collectors can pursue and the legal means they can use to pursue such debts. A debt expert like those at Graylock Advisors can help clarify the matter.

How a professional debt expert can help

If you are in a bind and do not know what to do about your debts, you need to get in touch with a local debt expert. Debt management entities like Graylock Advisors offer an array of services, including debt consolidation and low interest rate debt consolidation loans to help clients stay debt free. Graylock Advisors will help consolidate your debt into one, low interest payment.

Brice Capital Effects of Debt

Unexpected Side-Effects of Debt According to Brice Capital

Many people today are struggling under a massive load of debt. According to the Washington Post, 7 million people in the United States are now behind in their auto loan payment for three months or more. This means that the debt of their auto loan is now overwhelming them. 

Also NerdWallet stated that Americans have an average of just under $7,000 in credit card debt. Since the credit cards issued today have very high interest rates, many of the people who struggle under this debt don’t think they will ever be able to fully pay it off. 

Brice Capital has found that, for their clients, this debt has many unexpected consequences: 

No Retirement Savings – 

Debtors are unable to save for their retirement, since they are making the mandatory interest rate payments on credit card debt. This will force them to have to work later in life. 

Marriage and Health Problems – 

The stress of trying to keep up with payments to multiple lenders, some of whom have ridiculous interest rates, takes its toll on young married couples. Also, people can have trouble sleeping, be depressed, get headaches and even have a heart attack when they are deeply in debt. 

Credit Score Domino Effect – 

Sadly, according to TheBalance.com, even if you are making those payments on time, 30 percent of your credit score relates to how much debt you carry. If you carry too much debt, your credit score will decline. 

That creates a domino effect, since it can also influence the amount of money you pay for auto insurance and even the type of job you qualify for. 

Juggling Other Expenses – 

Over time, people who are paying exorbitant rates for credit will begin to have trouble paying for other expenses, such as utilities, food and gasoline. 

Precluded from Home Ownership and Other Housing –

If your costs for servicing your debt exceed a certain formula, you will not be able to buy a home because your ratio of expenses to income will be too high to qualify for a home mortgage. 

Even if you are forced to rent an apartment, bad credit could preclude you from being approved by the landlord. 

Staying in a Bad Job – 

Changing jobs is risky. People struggling under a high load of debt and interest payments are hesitant to leave a soul-crushing job because they are afraid things may not work out at the new job, leaving them unable to service their debt payments at all. So, they may stay with jobs that are causing them even more stress and possibly harming their health. 

Paying Too Much for Purchases – 

If you are paying high interest rates on credit cards, you end up paying far too much for your purchases when you take into account the interest payment as well. 

Ignoring Health Issues – 

Since we don’t have a universal health care system in the United States, many people have to pay for their health care out-of-pocket. According to United Federal Credit Union, when one is juggling bill payments, some people opt to skip going to the doctor for a small thing that can morph into a larger health issue. 

Wage Garnishments –

If you get behind in these crushing payments and a creditor takes you to court, you could have some wages garnished from your paycheck. 

Bankruptcy May Not Help – 

If you mostly owe student loans or back taxes, as many in the U.S. do, these debts are rarely discharged in bankruptcy, so you will still owe the student loans and tax payments, even after bankruptcy proceedings. 

United Federal Credit Union also stated that the average credit card interest rate is just under 24 percent. If one could get a loan with a lower interest rate, such as nearer 10 percent, one could save about $260 yearly, if they had a balance of $2,000. 

If you are in excessive amounts of debt, consider consulting industry leaders, like Brice Capital, on debt consolidation and other means of improving your financial stability. Heavy loads of debt carry too many unintended consequences that devastate the quality of life for those who are ensnared in that web. 

What to Do if Your Corporation is Facing Criminal Charges in Tampa

Just like individuals, corporations have rules that they need to abide by. If a company breaks those rules, it can face charges that result in financial and other penalties. In some cases, those other penalties include executives or employees spending time in jail or prison. What should your corporation do if it faces criminal charges?

Take Time to Fully Understand the Charges

The first step in the process of preparing a legal defense is to understand the charge or charge that your company is facing. It is possible that the government is pressing charges against someone who embezzled money or otherwise acted inappropriately without your knowledge. Furthermore, you should understand that a criminal charge is merely an accusation of a crime. Therefore, there is no guarantee that you or anyone else did anything wrong. 

Hire an Attorney and Create a Legal Position

A Tampa criminal defense lawyer will be able to help you learn more about your rights throughout the legal process. Those rights typically include the ability to remain silent in the face of questions from a judge, prosecutor or police officer. You also have the right to ask to be free on bail as the legal process unfolds.

The first thing that your attorney will do after being hired is begin to review the evidence against the company. This may involve reviewing tax documents, corporate emails or anything else that could be relevant in the matter. Generally speaking, legal counsel has the right to analyze any documents or other information that will be used as evidence at trial. 

After reviewing the evidence, your attorney will create a strategy that is most likely to help you obtain a favorable outcome in your case. Examples of legal strategies include asserting that you didn’t intend to break the law or that an employee acted without your knowledge. 

Cooperate to the Fullest Extent That You Can

It is important to cooperate with authorities as much as you can during an investigation. Your Tampa criminal defense lawyer will be able to help answer any questions investigators have or provide any information that investigators need. While you don’t want to incriminate yourself, being polite and helpful can bolster a claim that you are innocent. 

At a minimum, it can help to create a perception among a grand jury that you could be a victim of government overreach. The same may be true among jurors who preside over your trial. Having a solid rapport with the judge or prosecutor in your case can also make it easier to negotiate a plea deal that comes with favorable terms. 

Listen to the Advice of Your Counsel 

As a business owner, you may feel as if you can be successful at anything that you put your mind to. However, it is critical that you follow the advice of your attorney throughout the legal process. Going against the advice of counsel could result in additional charges or penalties that could be avoided by not letting your ego get in the way. Remember, even attorneys will hire attorneys to represent them in their own legal matters. 

If your company is facing criminal charges, it is important to hire an attorney as quickly as possible. This may help to preserve your rights and increase your chances of resolving the matter quickly and favorably. It can also minimize the potential damage done to your company’s brand and to those who are associated with it. 

Barron Advisors Credit Payment

Barron Advisors Explain the Effect Bad Credit Has on Your Life

Taking out a loan or using a credit card may seem like it makes life a lot easier, because now you can afford the things that you couldn’t afford before. The problem with this thinking manifests when you are not able to pay, whether in full or partially, and in good time. If you find yourself in either of these messes – that is, late payment or non-payment of debt – then you are beginning to have a negative effect on your credit score. Having a bad credit score means that you are in a lot of trouble financially, and although you might not see it right away, shortly you will feel the effects. Barron Advisors, a company that specializes in loan consolidation, explains how bad credit can affect your life as detailed below.

1. Non-Approval for Loans or Credit Cards
Most people with bad credit get rejected when they apply for a loan, and this can be very painful when you urgently need money. Most of your credit card applications will also be denied if you have bad credit. A few lenders may be willing to give you are a loan even with your bad credit, but these lenders are uncommon and will often charge higher fees in exchange. Many lenders are not willing to take the risk of giving credit to people who have been unable or unwilling to settle their loans with their previous lenders.

2. Denial of Employment
Some jobs are very strict, and most employers will check your credit score before they can consider you for such jobs. For instance, most managerial positions or finance related jobs require someone who has good credit, according to these employers. Therefore, as much as you may be qualified for a certain position in your dream company, your bad credit can cost you that job. If they realize you have gone bankrupt, have high debts, or substantial outstanding bills, they may not have confidence working with you. They will be afraid that your position might affect your performance at work. 

3. Landlords May Deny You an Apartment
Most landlords are very strict with their properties and may not be willing to approve you as their tenant if you have bad credit. According to Barron Advisors, you may keep being denied for apartments, and this can quickly become frustrating. If you are lucky to get a landlord who is willing to take a risk, be prepared to pay a higher security deposit than other tenants were asked for, because they won’t risk it without taking precautions. 

4. Paying Security Deposits for Utilities
In normal circumstances, people are not asked for a deposit on utilities, but if you have bad credit, you will have to pay these deposits. It won’t matter whether you have been paying your utility bills on time or not, because the utility companies will still require you to pay the deposit. With bad credit, you may also be forced to settle for a prepaid cell phone on a month-to-month contract, and the cost is usually very high. In extreme cases, you might not get this service at all.

5. Impact on Personal Relationships
In most relationships, finance is a tricky subject. It’s not uncommon for couples to get married before ever discussing income, debt and credit scores. However, the problem comes into play when you are trying to take out a mortgage or any other loan together. The spouse with a lower score will definitely affect the other person’s ability to access the things they want, because your ability to borrow together will be affected by the score of both partners. 

How to Market Your Plastic Surgery Practice in the 21st Century

Unlike a few decades ago, more and more people are going for cosmetic procedures, and there is a possibility that the demand for plastic surgery will continue. Increase in demand comes with an increase in supply, and this means competition is also very stiff in this industry. It is, therefore, important for players in the industry to utilize the best marketing strategies to attract new clients and maintain them. You will also need to stay on top of innovation by using the latest technology in the market to provide topnotch services. That said, if you want your plastic surgery practice to stand out in the 21st century, then consider utilizing the following marketing tips.

1. Provide Educating Contents

Many people will tell you to improve your online presence by posting now and then, but the impact of your postings will depend on the quality of the content you post. The content will help in proving your level of expertise as a plastic surgeon to the people who read the contents. Many people who are looking for any cosmetic procedure want to do it with someone intelligent and knowledgeable. If you never include information about these procedures, how do you expect to convince them that you know what you are doing? Quality content means having relevant, educative and trending information about your line of work.

2. Use SEO To Improve Visibility

Technology has changed how people go shopping for goods and services and most rush to the internet first before making the purchasing decision. In this case, most people looking for the best plastic surgeon Tampa will go to the internet first. The question is, how easy is it for people to find you during their search? The easier way to improve your visibility on the internet is through search engine optimization (SEO). SEO is a digital marketing strategy that helps you to rank among the first search results on a search engine every time a potential client searches for something related to plastic surgery. If you do not know how to use SEO effectively, it is good to work with a reliable digital marketing company to help you.

3. Use Social Media Marketing

In today’s digital world, you cannot afford to ignore the impact social media has brought to both people and businesses. Social media is no longer an exclusive social place where people meet just to talk and create or build relationships; it has become a market for businesses as well. Businesses are using social media to meet and interact with potential and current clients. Clients can ask questions concerning your services and you as a plastic surgeon will be able to respond to their queries accordingly. Open accounts on famous social media platforms such as Facebook, Instagram, or Twitter and make sure you link these pages to your blogs. Every content you post on your website about cosmetic procedures should also be shared on these social pages to improve your visibility and eventually will earn customers’ trust. 

4. Engage Your Local Community

You will need to relate to your target customers by availing yourself and being part of local community activities. If you get a chance to speak in local events about health or anything related to cosmetic procedures, go ahead and be open to answering questions posed by attendees. You can also relate well with locals by participating in charitable work whereby you donate both physical and consultation services. If possible, you can organize open events to enlighten people about cosmetic procedures and help them write-off the usual myths about cosmetic surgery. Every time you mingle with these people, remember to give them your business card to reach out to you later. 

In the 21st century, most of the things that work successfully are related to technology, and this is the reason why you need to utilize the internet to market your cosmetic surgery practice. However, never neglect word of mouth too because the strategy has worked wonders for many. 

Pierre Courchesne on the Importance of Customer Service

The Importance of Customer Service According to Dr. Pierre Courchesne

Many companies are struggling with their bottom lines and looking for some way to improve them. They often gravitate towards technology or gimmicks that they believe will be a shortcut to financial success, but these newer techniques pale in comparison to the effectiveness of good customer service. This practice cannot be implemented overnight, but at the same time, it is not impossible to achieve. Companies simply have to be careful and diligent in order to implement a regime that respects the customer.


Low Costs

Customer service is one of the most cost-effective ways for a company to bring in more revenue. Almost every approach to raising revenues costs a significant amount of money up front. Marketing, capital improvements, and large expansions in a workforce can cost thousands of dollars. By contrast, customer service is something that can be improved significantly with the on-the-job work training that a company is already paying for. 

Good customer service cannot be bought and implemented immediately like a form of accounting software. Individuals have to work at it and be given positions where they can implement its tenets. While the process does take a significant amount of time, it will always provide positive results over the long term if it is successful.


Repeat Customers

Customer service is also important because of its ability to gain repeat customers. Repeat customers are essential for companies to expand and make the most out of their marketing and training dollars. These customers provide much more revenue than customers who only shop at a business one time. Repeat customers make up the vast majority of companies’ profit margins. These individuals can be enticed to come back with positive customer service. Individuals look forward to seeing clerks and other employees who provide them with a high level of customer service. 

They may start to see these individuals as friends. High levels of customer service are not universal and can easily place one company above many of its competitors. This trend has accelerated in recent years with the rise of online shopping. More and more in-person companies have to prioritize customer service because they know they will not be able to compete on price with the world’s online shopping juggernauts.


Customer Loyalty

Repeat customers are different from loyal customers. A loyal customer is often so swayed by good customer service that they will continue to stick with a company despite any problems that may occur. All companies will go through certain situations that force them to harm their customers at least to a certain degree. Companies will raise prices or shut down for a short period of time in order to conduct repairs or renovations. 

Great customer service will keep individuals coming back to a company, or a firm like that of Dr. Pierre Courchesne, even during these down times. Individuals will start to develop a personal relationship with a company. If they do not shop at that company, they feel as though they are doing a disservice to a friend or relative. This attachment is greater than any possible market pressures. It can push a customer base to stay loyal through circumstances that would cause the average individual to leave almost any other business.


Conclusion



According to Dr. Pierre Courchesne, companies that believe they need to improve customer service must take action as soon as possible. Managers and owners need to hire a consultant and pick up new approaches to training and hiring. Most importantly, these individuals need to make it clear to their employees that customer service will be a priority for the company moving forward. Companies have to be careful and start working quickly if they hope to reap the rewards of good customer service as quickly as possible.

Truman Advisors Share the Differences Between Good Debt and Bad Debt

Loans have helped many to improve their financial position, while others have fallen into deep problems due to the same loans. While it is possible to live an entirely debt-free life, avoiding loans can hinder your ability to own your dream home or car or start a business that could positively change your life. Therefore, a loan can both be a good and bad thing at the same time. The main difference is the reason you are taking out the loan and how you put the money to use after acquiring it.

The first thing to do is note the differences between your wants and your needs. In this case, if you borrow money to cover for your needs or buy things that appreciate in value, then that’s good debt. If you borrow to cover your wants or buy things that depreciate, then that’s bad debt. The following examples of both good and bad debt will give you a clearer distinction between the two.

Good Debts 

1. School Loans

Using a loan to pay for your education is good debt because once you acquire your academic degree, you will be able to earn more money in your lifetime. It’s something that qualifies you for a certain job over those who lack such qualifications. Therefore, borrowing to pay for your education or child’s education is rarely a bad decision. 

2. Home Loans

Being a homeowner is commendable. Unfortunately, not everyone can afford a home at the moment, and while taking out a mortgage loan may be daunting due to the size of the loan, this is typically a good decision. Truman Advisors argue that rather than continue paying for rented housing, that same money can be put toward a home loan and be used to build equity. A mortgage is a good example of good debt and can be a smart financial decision depending on your unique situation.

3. Auto Loans

Some people’s lives are more convenient with their own car, especially when public transport is not available or is unreliable. Buying a car often becomes the only option, and if you cannot afford it, you will be required to take out a car loan. An auto loan can be both bad and good debt. The deciding factors are the type of car you buy and the way that it’s used. A used car with low miles that helps commute to work and make a better living is good debt, while a new Ferrari used to drive to the mall is bad debt.


4. Business Loans

They say it takes money to make money and this is why in most cases borrowing money for business is justified. However, make sure that you borrow with a good plan and have great business prospects so that at the end of the day, the business generates more income than the initial expense. According to Truman Advisors, a business loan is good debt if, and only if, you are purchasing or paying for something that brings more money to the business. 

Bad Credit 

1. Loans for Discretionary Expenses 

Taking out a personal loan to be able to pay for vacations, buy expensive clothes or jewelry or any other discretionary item is bad debt. You should either save for these things naturally or wait until you can boost your income, but never borrow. 

2. High-Interest Credit Cards

Credit cards provide their holders with the ability to make purchases anytime they choose, regardless of whether it’s a need or a want. This freedom of spending using borrowed money makes credit card bad debt. Unfortunately, almost every American has a credit card, and it makes them feel like it is easier to afford an item using a credit card than using cash. The bad news is that it is hard to get out of credit card debt and it is better if you do not acquire it in the first place.

3. Payday Loans 

Most companies that provide payday loans charge excessively high interest rates because they know many people are desperate for cash. Truman Advisors says that you should be very careful because paying off these loans becomes very difficult. A payday loan is one of the worst forms of bad debt, and even if you desperately need a short-term loan, it is better to exhaust all other options rather than relying on such companies. 

You will more than likely find yourself borrowing at some point in your life, and it is good you understand the difference between good debt and bad debt. Watch out to avoid falling into deep debts that could have been avoided in the first place.