While the term "good debt" sounds like an oxymoron, there really is such a thing.
It's basically any debt you have that has a low interest rate and could possible get you a tax deduction.
So some good debt is well...good...to have.
Good debt is anything that leads to a higher payoff later, such as a mortgage on a house that appreciates in value or a student loan that translates into a degree with higher future earnings
Granted, paying off all your debt is a good rule of thumb but if the interest rate on your mortgage is historically low maybe instead of rushing to pay that off, consider putting any extra money you have into your retirement accounts such as 401(k)s and IRAs - or even a 529 college savings accounts for the kids.
The issue is not CHK's debt, but whether it can service the debt, and the company's robust hedge book and the recent uptrend in natural gas pricing CHK show that it should be.
After reaching the age of 68, I know a lot more than I did back in 1968. Here's my note to myself as I was getting ready to go off to college and then on to the real world.
It's so nice to be in love and really get to know someone. But do you really know that person? Do you know your sweetie's credit score? Do you have your own checking account? Give me 60 seconds and I'll tell you why you should!
Depending on how much debt you owe, it could take years to pay down.
Real Money's message boards are strictly for the open exchange of investment ideas among registered users. Any discussions or subjects off that topic or that do not promote this goal will be removed at the discretion of the site's moderators. Abusive, insensitive or threatening comments will not be tolerated and will be deleted. Thank you for your cooperation.
If you have questions, please contact us here.
Email
Email sent
Thank you, your email to has been sent successfully.
