Legitimate Debt

Few people are in a position to pay the full price of a house or an apartment. So, many buy a house by obtaining a loan from a bank. The monthly sum they pay to the bank for this loan can be viewed as rent for a house. But when they have paid back the loan over an extended period, they own the house!

Many people also find it helpful to take out a loan to purchase a fuel-efficient motor vehicle. By paying off the loan as quickly as possible, the car turns into a valuable asset, another form of saved money.b Some have found it wise to buy a used car that is in good condition and has relatively few miles on it. Others save money by using public transportation or even riding a bicycle.