Is it bad to have a loan? Loans may come in many types that includes the housing loan, personal loan, car loan, commercial loan, business loan or corporate loan. Many of us would not be aware that the credit card is also considered a type of loan. We have 2 categorize of loans which is the secured and the unsecured loans, with the secured one being colletarelized with either a house, car or even cash and the other not.

In my opinion, all loans are dangerous to an individual if he or she does not have good financial knowledge. I would strongly advise those who does not know how to manage their finances well, pay down their loan as soon as possible with all their extra cash when possible. Default in payment will always lead to bad credit mortgage loans or even bakruptcy if it is an unsecured loan. Leveraging for investment with loans is only applicable for usage for those who has very sound financial knowledge in the money market.

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