Good or bad Debt? What's the difference when they are all debts

Completely avoiding debt does not necessarily mean that you are financially responsible. There are some good debts and some bad debts. What is important is that you are thinking critically about your finances, saving toward an emergency fund, and creating a plan to reach future financial goals.

Understanding good vs. bad debt is essential in helping you learn how to manage your finances well. Good debt increases your net worth or generates value, so this can be found in something like a student loan or a small business loan, which overall will help you to increase your potential value. Bad debt is debt that is accumulated to purchase goods or services that do not have lasting value, such as credit card debt, which can come in handy for a short-term purchase but can have ramifications in the long term if not paid off responsibly. Lets talk if you feel this doesn't work in your case with examples.

#talkingDebt