What is considered a good debt?
In addition, "good" debt can be a loan used to finance something that will offer a good return on the investment. Examples of good debt may include: Your mortgage. You borrow money to pay for a home in hopes that by the time your mortgage is paid off, your home will be worth more.
What are examples of bad debt?
Debt is anything owed by one party to another. Examples of debt include amounts owed on credit cards, car loans, and mortgages.
What are examples of debt?
Key Takeaways. Good debt has the potential to increase your net worth or enhance your life in an important way. Bad debt involves borrowing money to purchase rapidly depreciating assets or only for the purpose of consumption.
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