Good Debt & Bad Debt - Examples of Good/Bad Debt

[Alex]

Good Debt & Bad Debt - Examples of Good/Bad DebtGood Debt & Bad Debt - Examples of Good/Bad Debt

Debt due for services that can assist develop capital or boost earnings, like education debt, housing, or company financing, is referred to as "good" borrowing. Credit card companies and other financial commitments are examples of "bad" debt because they don't help you succeed in your economic state. These are exaggerated statements. Debt due for services that can assist develop capital or boost earnings, like education debt, housing, or company financing, is referred to as "good" borrowing. Credit card companies and other financial commitments are examples of "bad" debt because they don't help you succeed in your economic state. To breakdown what negative or bad debt consists of, would be bad debt like unnecessary loans or borrowing for wants rather than needs, this includes borrowing money for "the brand new gadget", paying a scam through means of credit, or taking a loan out to invest in stocks/shares/ and or Crypto.

Can you think of any examples of Good Debt & Bad Debt - Examples of Good/Bad Debt?

 

[Holluwaphemmy]

Firstly I don't want to type any debt as good inasmuch as it can be avoided. I won't advise you to borrow money in order to eat. Now, some may say that we can borrow money to invest but how sure are you that the investment you are venturing into new crash you think you want to borrow money to invest in cryptocurrency but trust me I won't advise you to do that because you will run at a loss that you won't even be prepared to pay.

 

[Sincerem]

Many people get it all wrong and are never out of debts because they keep borrowing for the wrong reasons maybe to buy the latest cars, or to upgrade their wardrobe or pay for a long vacation trip that consumes thousand of dollars, this would only become a pain in the neck in the future when you will need to pay off those bad debts.

 

[Setho]

There is a loan that is being given by a financial institution around here that they can forgive your interest if you reach a certain number of turnover in your business in a particular time. You are then going to reward them in equity instead and I think that is an example of a good loan.

 

[Syldan]

Actually there are good debt and also bad debt. good debt are debt which are borrowed for productive establishment like building, running a business ad you have mentioned and things that will generate better income in the future.

 

[glitch]

I am not sure what I would consider good debt. I know they say you need debt to build your credit scores but I feel like that is just a giant trap and people end up over the heads because of how loosely it is managed these days.

 

[Shigobad20201]

We have different type of debt , which can be categorised into good and bad debt , a good debt is a debt you enter for the succes of a business and which you have made a plan to pay batock without affecting the business negatively , while a bad debt is a situation where you go into taking loans without making a proper arrangement of returning it back , which later negatively affects the business .

 

[Godspower]

I am not sure what I would consider good debt. I know they say you need debt to build your credit scores but I feel like that is just a giant trap and people end up over the heads because of how loosely it is managed these days.

It's what most businesses fail to avoid. They must always be careful to avoid ordinary debts progressing into becoming bad debts. If possible, debts should be avoided in business completely.

 

[glitch]

It's what most businesses fail to avoid. They must always be careful to avoid ordinary debts progressing into becoming bad debts. If possible, debts should be avoided in business completely.

I agree. I think in most cases, you can't when you are starting up but getting it paid off as fast as possible is ideal!

 

[Shigobad20201]

Good debt are the debt you owed for the progress of the company and which you can pay backs with ease while bad debt are the debt that can ruin and caused the closure of a business.

 

[Kane]

If you borrow to make an investment or start a business, if you borrow to generate income, it can be called good debt. However, if you borrow money and use it on something that does not give you any returns, it is bad debt. For instance, if you borrow money and use it to buy a house and you make money form your house by collecting., your debt is basically a good debt. However, if you borrow money to by an iPhone or a car, it is bad debt.