Understanding Money with Eoin McGee
Debt
Nov 1, 2023
Eoin is joined by 'Niamh' who found herself swamped in debt. They explore the concept of 'happy debt' versus 'crappy debt' and discuss the pitfalls of different types of debt. The importance of having a financial buffer and prioritizing debt is emphasized. They also analyze installment payment apps, highlight the dangers of buy now pay later schemes, and offer strategies for tackling debt and achieving quick wins.
40:37
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Quick takeaways
- Understanding the distinction between happy debt and crappy debt helps to make informed financial decisions and avoid unnecessary debt.
- Being aware of the current state of debt and potential risks associated with borrowing is crucial for financial awareness and responsible borrowing.
Deep dives
Differentiating Between Happy Debt and Crappy Debt
The podcast episode discusses the distinction between happy debt and crappy debt. Happy debt refers to borrowing money at low interest rates to purchase assets that appreciate in value, such as a mortgage. Crappy debt, on the other hand, includes loans with higher interest rates used for expenses that go down in value or are consumed immediately. The episode emphasizes the importance of understanding the terms, interest rates, and long-term implications of different types of debt.
