May 02, 2022

Is there something we call as good debt? Are you into debt? Is having a debt good? Do you have debt? If yes then were the same.

Hello read.cash writers and readers. How are you? How was your second day of the month? How was your weather there? Early in the morning our weather here is not sunny because the dark clouds cover the sky and the sun as well that's why Mr. sun was not able to give us a morning dose of Vitamin D. But later on the sun shines and I decided to do the laundry. But unfortunately, I am not yet done and the rain drops. I still do finished it so I won't have a pending job to do.

Good debt or bad debt

Do you believe that there is such a good debt? If there is a good debt for sure, there is also a bad debt. How can we distinguish them?

Today's topic was born early this morning because I remember the payslip of my husband. He only had a small net pay because he had a lot of loans. Though I know about it but I was shocked because the deduction is so big giving him a small salary.

To mention he had loans on SSS, PAG-IBIG, and to the employees cooperative.

Disclaimer: Today's topic is merely my own ideas and opinions and didn't mean to debate or disagree about your own understanding about this topic.

Good debt

What is a good debt? But before we will talk about it, let's know first what is debt?

Debt is an amount of money you owe or borrowed from a person, a bank, a company or in a cooperative.

Good debt for me is a debt that has a purpose, a purpose that has a better result and a result that has a profit.

Me personally is not fond of having a debt. I will prefer to let someone borrow me something than I will do it to others. As long as I still have an another option, I won't put myself to have problems over debt.

When I got married, I am also happy that my husband is also not into it. For how many years, we didn't have a debt until this year.

As I mentioned earlier, he had loans on three different companies, SSS, PAG-IBIG and to their cooperative.

Before, I keep on saying No to this until I realized that sometimes there is such a good debt.

I considered those three loans as a good debt because on how we used and where we spend it.

• SSS

  We decided to loan money from SSS because we bought a piece of lot in the farm where my husband's aunt is the owner. A piece of land is a good investment, right? My husband planned to plant some coconut trees there so we have some benefits from it in the future.

• PAG-IBIG

  We decided to loan money from PAG-IBIG because we want to have our own electric connection in our small house. After it was approved,we directly applied for electric connection and we already have it last month.

• Cooperative

  Last month, my husband's aunt decided to sell another part of her farm because she badly needed some amount of money. So since my husband also wants to help his aunt, I agree to his plan to loan some money to his cooperative so he could buy it. To make the long story short, his loan application was approved and he was able to buy it.

Will you agree to me that those are really a good debt?

Another thing I will consider as a good debt is when you apply for a loan so you could start a small business. Also, if you want to buy a materials or equipment so you could earn something.

Bad debt

What is a bad debt? For me, a bad debt is a dept that you used in some nonsense wants. For example:

• Buy a new phone

  You applied for a loan because you want to buy a new phone but you still have a good one. You just want to buy another one because you saw a friend having it or having a new phone and you want to have it also.

  I am not telling that buying a new phone is bad but it will depend on the purpose.

• Loan for a big celebration

  We do have special days in our life like birthday and wedding day. I heard some of my friends who loan a big amount just to have a great celebration. I sometimes told them that simple celebration is better that a great celebration but you are full of debt. After the party, you start having an headache because you don't know where to get money to pay for it.

  For me, I won't loan some money just to impress my friends and neighbors that I have a great celebration. Simple celebration with family is okay with me.

Ending thoughts

Debt is the last option when we cannot find any other solutions in terms of financial problem. When you borrow something to someone please don't forget to pay for it as promised because you don't know how a person works hard to have that amount of money.

Debt is not bad as long as you used it for a good purpose.

Thank you so much for reading. I 
hope you learn something today.
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