When someone wants to finance a purchase through debt, we usually talk about a loan. While gaining debt might not seem like the best thing on the surface, it actually makes sense in a few cases.
- Mortgage loan – purchase your first home, or refinance
- Auto loan – purchase a new car, or a used vehicle
- Student loan – loans that are usually subsidized by the government, for schooling
- Personal loan – don’t require collateral, and include loans and credit cards
- Business loan – specifically for business entities, and come with restrictions
The above are entirely acceptable reasons to create debt for a purchase.