Oct 16, 2025 · What is good debt? Good debt is generally considered any debt that may help you increase your net worth or generate future income. Importantly, it typically has a low interest or …

Sep 13, 2024 · Good debt is debt that you take on to achieve meaningful growth in your personal life or finances, like a mortgage or student loan. Bad debt is relatively expensive debt and debt …

Apr 17, 2025 · Good debt is borrowed money that can help you build wealth, while bad debt hampers your financial goals. The interest rate on good debt tends to be lower, versus bad …

Apr 15, 2025 · Debt can be considered “good” if it has the potential to increase your net worth or significantly enhance your life. A student loan may be considered good debt if it helps you on …

Jul 28, 2025 · A simple rule about debt is that if it increases your net worth or has future value, it’s good debt. If it doesn’t do that and you don’t have cash to pay for it, it’s bad debt.

Good debt—mortgages, student loans, and business loans, steer you toward your goals. Bad debt—credit cards, predatory loans, and any loan used for a depreciating asset—steers you …

Debt used to help build wealth or improve a person’s financial situation might be considered good debt. Debt that’s unaffordable or doesn’t offer long-term benefits might be considered bad debt.

Sep 25, 2024 · But there is a distinct defining line that separates good debt from bad debt, and it’s all about what a debt does for you long-term. This page explains how to separate good debt …

May 1, 2025 · You'll often hear financial pros talk in terms of "good debt versus bad debt," with "good" debt describing things that aim to build your net worth or help you increase your lifetime …

Feb 12, 2025 · There’s a lot of talk about debt and whether it is good or bad. As a general rule, when discussing money matters or, really, anything in life, whenever superlatives are used, …