This article was written by Darrow advisor Kristin McKenna, CFP® and originally published by Forbes.
The idea of taking on debt doesn’t generally evoke positive emotions. But with so many different types of loans and reasons individuals decide to borrow, it’s best to keep an open mind and consider every situation on its own. Letting emotions—not numbers—drive the decision-making process when considering a loan or paying one off can really hurt your financial outcome.
As you weigh the pros and cons of borrowing or paying cash, take a moment to consider the merits of what you’re buying and whether the cost is justified. Remember: all debt is bad debt if you can’t afford it.