Important Notice: Our web hosting provider recently started charging us for additional visits, which was unexpected. In response, we're seeking donations. Depending on the situation, we may explore different monetization options for our Community and Expert Contributors. It's crucial to provide more returns for their expertise and offer more Expert Validated Answers or AI Validated Answers. Learn more about our hosting issue here.

What is the difference between good debt and bad debt?

April 26, 2017bad consumer debt relief. credit card debt relief debt debt relief management debt relief options debt relief programs debt relief services difference good

0

Posted

What is the difference between good debt and bad debt?

1 Answer

0

Posted

Good debt is debt used for the purposes of creating value. A home loan is an example of good debt. A home has the potential of increasing in value. Similarly business loans are another example of good debt. Bad debt is debt on an item that goes down in value after the item is purchased. For example, when you purchase a car, the value of the car goes down as soon as you drive it off the lot. The debt taken to purchase the car is termed as bad debt. Regardless of which kind of debt you have, we can match you with debt relief programs that are suitable for your financial circumstances.