Good Debt Vs. Bad Debt

Not all Debt is bad. Good Debt can help you grow your wealth if managed properly. The Goal for everybody should be to reduce and remove all the bad debt and manage Good Debt effectively in right way.

Good Debt

• Mortgage Debt for the home (Helps you build home equity)
  
• Car Loan (Helps you commute for work and increase the income)
• Education Loan (Helps you learn new skills and build a career to increase the income)
• Loan to pay for an unexpected emergency (Eg. medical emergency to treat your child)
• Buying things for your family to save money in long run.

Bad Debt

• Credit Card Debt and paying off minimum balances
• Secure a debt with your home or other essential things for your family
• Borrowing money from dangerous lenders like Advance Pay day
• Using Credit Card to purchase non essential things
• Have high interest variable interest and make minimum or low monthly payments