Hello whinubbers, my name is Jesse Meekham and this is podcast number 137 for you need a budget where we teach you four rules to help you stop living paycheck to paycheck, get out of debt, and save more money.

My post from a little bit ago and my subsequent podcast which feedback wise was quite

positive sparked some questions regarding good debt and bad debt in that post which I need to

edit I didn't differentiate between consumer debt and a mortgage and truth be told I didn't like my mortgage either and paid that off as quickly as I

could but more truth be told I've also grown quite comfortable with the idea of owning a few rental properties that carry

a modest mortgage on each of them.

I just saw having a personal mortgage is not terribly risky and someone would say even prudent.

And so when my first mortgage was paid off and I saw the opportunity to buy a rental property.

I thought, well, if it's okay to have a personal mortgage and that's now gone,

why wouldn't it be okay to have a mortgage on a rental property

and have someone else paying that for me.

Not to say there isn't, you know, lots of work with rental properties, although I use a property

manager, so I try and minimize that.

So I'm not opposed to mortgages, but the real question becomes what is good debt and what is

bad debt and there's a blog post forthcoming and forthcoming that word is the not

something you'll hear me say again but blog post on its way and these are my

thoughts before I have them all ironed out down on paper.

I was trying to figure out what kind of principle would let you basically differentiate between good dead and bad debt and I think the

underlying principle is that it's bad debt if the underlying asset that you've

purchased with debt goes down in value.

So we just got back from Mexico from a great one week trip

at one of these all-inclusive resorts.

...