Salida, Colorado (PressExposure) May 09, 2011 -- People's Financial Advisor (PFA) [http://www.peoplesfinancialadvisor.com] , a leading provider of online fiduciary financial planning services, today unveiled that its Financial Plan includes a specific actionable plan for keeping Good debt and getting rid of Bad debt.
Mr. Robert Schumann, Chief Advice Officer at People's Financial Advisor explains:
"When you pay interest on credit card purchases and furniture loans you are "borrowing from your future to pay for your now". Good debt, like a 30-year fixed rate mortgage and student loans, helps you build wealth. Your house and education will grow in value as the debt disappears. Bad debt, like interest on credit cards and consumer loans, destroys wealth. Cars, TVs, etc. usually decline in value as soon as you drive them off the parking lot."
People's Financial Advisor leverages its online interview technology to "discuss" with the client his/her situation and provide a personalized fiduciary advice. The analysis differentiates between your Good and Bad debt. It presents an acceptable range for your bad debt in relationship to your income and a plan of managing your good debt. The debt management plan is part of an integrated wealth accumulation or wealth conservation plan.
Mr. Schumann continues: "A business loan can be good or bad debt. We consider it good debt if the business is generating sufficient revenue to cover the loan payments or owns assets that equal the value of the loan."
Mr. David Ron, Co-Founder & CEO of People's Financial Advisor said: "Every professional will tell you to avoid credit card debt but very few Certified Financial Planners will encourage you to assume (good) debt to grow financially. Some of the good debt (e.g., mortgage, student loan) has tax advantages just to tell you that even Uncle Sam thinks it's a good idea to have this kind of debt."