• Become a Contributor

FlashNews:

Tips and Strategies To Get Out of Debt

How Can I Go About Neighborhood Search For Retiring Homeowners

Installment Loans for a Business

The Definition of Product Positioning

How to Start a Small Business at Home

6 Things to Keep in Mind When Buying Hair Products

The Top Safety Tips For Cycling

Tips for Staging Intervention for Substance Abuse

Constructive Methods of Treating Addiction

Understanding Trauma and the Role it Plays in Addiction

This Is What an Outstanding Drug Rehabilitation Center Should Offer

Addiction therapy services to help you overcome Drug and Alcohol Abuse

4 Essential Insurance Policies To Have

What are the signs that you need rehab?

Top Reasons You Need Business Insurance

Some benefits of trenchless pipe lining

All you need to know about a car accident attorney

Is Adultery a Sex Crime? In Some Cases, Yes

Xeriscaped Areas Can Be Full of Plants

How Businesses Help With Philanthropy When Hurricanes Strike

PHXnews Phoenix, AZ News. Space for Leader not for Cheer Leader.
  • Home
  • Business
  • Education
  • Finance & Law
  • Health
  • IT
  • Lifetsyle
  • Money
  • SEO News
Finance

Good Debt and Bad Debt: What’s the Difference?

300
by Diana Lengerson
February 10, 2020February 10, 2020
Good Debt and Bad Debt: What’s the Difference?
0 Share 30views
FacebookTwitterlinkedinPinterestGoogle+RedditMixTumblr

For some individuals, the idea of debt goes hand-in-hand with the idea of adulthood, as if you can’t have one without the other. However, understanding what debt is and the difference between good debt and bad debt may change your outlook on how to handle it.

What is Debt?

Before you can understand the nuances of debt, you have to understand debt itself. At its simplest, debt is money borrowed by one individual or party that is owed to another individual or party. Typically, debt is paid back on a fixed schedule of payments over a set period of time and may or may not accrue interest.

Perhaps the most well-known types of debt are credit cards, student loans, mortgages, auto loans and the like. Companies like Rescue One Financial can help you further understand debt and how it directly impacts your life.

What is Good Debt?

Good debt is debt that adds value to your life or to your future. For example, student loans are an investment in your future.

Photo credit: jasminedirectory.com

Coupled with the fact that the interest rate on student loans is typically very low and you don’t have to pay until you are out of school, taking on student loan debt can be one of the best ways to start establishing a credit history. Other examples of good debt include mortgages and small business loans.

Photo credit: jasminedirectory.com

What is Bad Debt?

Bad debt takes away from your net worth and harms your financial status. Credit cards are the most nefarious when it comes to accrued debt, as they typically have high interest rates are often used as forms of additional income and not an expense. Auto loans can also be viewed as bad debt, as can personal loans.

Photo credit: jasminedirectory.com

While some amount of debt is nearly inevitable for most people, but knowing which type of debt to avoid when possible can make the difference between drowning in financial hardship and growing your credit history.

Prev Post

Implementing a Successful Recycling Program at Work

Next Post

Easy Steps to Develop a Responsive WordPress Website

More posts

Clothes
How to Buy a Dress for a Woman
October 31, 2019October 31, 2019

How to Buy a Dress for a Woman

Business
April 28, 2022April 28, 2022

Tips and Strategies To Get Out of Debt

Health
A Complete Guide to Skin Care Routine
October 22, 2019September 3, 2021

A Complete Guide to Skin Care Routine

The Latest News

  • Tips and Strategies To Get Out of Debt April 28, 2022
  • How Can I Go About Neighborhood Search For Retiring Homeowners April 28, 2022
  • Installment Loans for a Business April 25, 2022
  • The Definition of Product Positioning April 25, 2022
  • How to Start a Small Business at Home April 25, 2022
  • 6 Things to Keep in Mind When Buying Hair Products February 3, 2022
  • Latest
  • Popular
  • April 28, 2022Tips and Strategies To Get Out of Debt
  • April 28, 2022How Can I Go About Neighborhood Search For Retiring Homeowners
  • April 25, 2022Installment Loans for a Business
  • How to Buy a Dress for a Woman
    October 31, 2019How to Buy a Dress for a Woman
  • April 28, 2022Tips and Strategies To Get Out of Debt
  • A Complete Guide to Skin Care Routine
    October 22, 2019A Complete Guide to Skin Care Routine

Most Popular

No shared posts

PHXnews offers news, reports, analysis from all around the world. We cover a wide range of topinc, including WWW, Nature, Science, Tech, Culture and more.

Featured

  • April 25, 2022The Definition of Product Positioning
  • Top 5 Reasons To Outsource Your SEO Services
    May 15, 2020Top 5 Reasons To Outsource Your SEO Services
  • Mastering Marketing – What You Need To Do
    June 8, 2018Mastering Marketing – What You Need To Do

Popular

  • 10 Tips to Host an Unforgettable Dinner at Home
    June 6, 201710 Tips to Host an Unforgettable Dinner at Home
  • Fall Wedding Favor Inspirations
    August 18, 2014Fall Wedding Favor Inspirations
  • How to surprise your wedding guests!
    August 12, 2014How to surprise your wedding guests!

Local Weather

Weather Icon

Search

  • Become a Contributor
PHXnews LLC © 2020 / All Rights Reserved
This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Cookie settingsACCEPT
Privacy & Cookies Policy

Privacy Overview

This website uses cookies to improve your experience while you navigate through the website. Out of these cookies, the cookies that are categorized as necessary are stored on your browser as they are as essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may have an effect on your browsing experience.
Necessary
Always Enabled
Necessary cookies are absolutely essential for the website to function properly. This category only includes cookies that ensures basic functionalities and security features of the website. These cookies do not store any personal information.
SAVE & ACCEPT