Explain whether the following consumer goods are classified as good or bad debt Explain your rationale a Mortgage b Home equity line of credit to build a new patio c Student loan d Gap credit card to purchase new wardrobe e Car loan for 2015 Dodge Charger with $0 down payment f Car loan for 2015 Fo...

a Mortgage x good debt Homes tend to increase in value over the longterm allowing you to ...

Explain whether the following consumer goods are classified as good or bad debt. Explain your rationale. a.

Question:

Explain whether the following consumer goods are classified as good or bad debt. Explain your rationale.
a. Mortgage
b. Home equity to build a new patio
c. Student loan
d. Gap credit card to purchase new wardrobe
e. Car loan for 2015 Dodge Charger with $0 down payment
f. Car loan for 2015 Ford Focus with $5,000 down payment Line of Credit
A line of credit (LOC) is a preset borrowing limit that can be used at any time. The borrower can take money out as needed until the limit is reached, and as money is repaid, it can be borrowed again in the case of an open line of credit. A LOC is...