How Much Should You Borrow?

October 28, 2019
Carrie Schwab-Pomerantz discusses good debt versus bad debt and some of the common mistakes people make with borrowing.

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After you listen

  • If you'd like to learn more about managing your own debt, there are dozens of useful articles from Carrie Schwab-Pomerantz at schwab.com/AskCarrie.
  • As Carrie mentioned, we often classify mortgages as "good debt." If you're a Schwab client, you may qualify for Schwab Bank's Investor Advantage Pricing on a home purchase or refinance loan through Rocket Mortgage®, home loan provider for Schwab Bank. You can learn more about Schwab Bank's home loan rates at schwab.com/mortgagerates.
  • If you'd like to learn more about managing your own debt, there are dozens of useful articles from Carrie Schwab-Pomerantz at schwab.com/AskCarrie.
  • As Carrie mentioned, we often classify mortgages as "good debt." If you're a Schwab client, you may qualify for Schwab Bank's Investor Advantage Pricing on a home purchase or refinance loan through Rocket Mortgage®, home loan provider for Schwab Bank. You can learn more about Schwab Bank's home loan rates at schwab.com/mortgagerates.

In today's world virtually everyone participates in the economy as either a borrower or a lender, and most people are both. If you've ever put money in a bank, then you're a lender. If you've ever used a credit card, then you're a borrower. In this episode, Mark Riepe talks with Carrie Schwab-Pomerantz about the liability side of your personal balance sheet—debt. Of course, not all debts are the same. Among the topics Mark and Carrie discuss are "good" debt versus "bad" debt, paying off debt before you retire, and a handy rule of thumb for managing your personal debt level.

You can read more about the exponential growth bias and personal finance in this study.

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