Are you having a good debt or bad debt?

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Avatar for JenThoughts
1 year ago
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.

The sky is covered with the dark clouds early in the morning
The rain pours at around 11am

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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1 year ago

Comments

I always faced bad debt. I want to do good debt.

$ 0.00
1 year ago

It's a matter of choice.. So, try to choose what is best.

$ 0.00
1 year ago

I definitely agree sis. Unang loan ni hubby sa sss pinambili namin ng automatic washing machine ayun good investment dahil working pa rin hanggang ngayon di ako nahirapang maglaba😅May housing loan din kami sa Pag ibig at mejo matagal tagal pa ang bayaran kaya eto working hard para may pambayad.

$ 0.01
1 year ago

Yes sis laking tulong din washing machine, mas lesser time ang need mo sa paglalaba. Makakagawa ka pa ng other task or makapag sideline after laba hehehe

$ 0.00
1 year ago

Truth. Yun lang di masyadong malinis😆 pero syempre yung time mo sa paglalaba eh pede mo gawin sa ibang bagay. Babalikan ko na lang sya para magsampay.

$ 0.00
1 year ago

Yung di masyadong marumi lang sis.. meron din talaga need kusutin ehheeh

$ 0.00
1 year ago

Kaya nga sis lalo ung mga puti, kaya wala ako masyadong puting damit para di mahirap maglaba😄

$ 0.00
1 year ago

Hehehe sa amin meron puti kasi uniform ni husband sa work..

$ 0.00
1 year ago

A big check talaga sis na dapat kung mangungutang man e ginagamit sa mapapakinabangan , salute sa inyung mag asawa kasi yan yung mga iniisip talaga kung saan gagamitin yung pera kung Sakali mang mangutang.

$ 0.01
1 year ago

Salamat sis... Una, nagduha duha jud mi kay di jud mi palautang until naka decide nga mangutang hehehe.. two years to pay jud ang tatlo ka loan. After two years pami maka ginhawa ug tarong ani hahaha

$ 0.00
1 year ago

Pero okay ra sis kay naa man jud nakita.

$ 0.00
1 year ago

Mao pud lagi sis... may handumanan kung baga hehehe

$ 0.00
1 year ago

I guess the difference between good and bad debt is what you use the money for. Right?

$ 0.01
1 year ago

Yes that's right, I share some reasons in the article.

$ 0.00
1 year ago

Yeah I agree, make sure that if you will engage yourself in debt, make sure that you have a good purpose on it. If you only use it for your "luho" or to buy your desires, it's a big No

$ 0.01
1 year ago

Ganda talaga if ganyan ang thinking ng karamihan sis hehhehe

$ 0.00
1 year ago

You are welcome, sis! 💕

Agree ako sa good debts na na mentioned mo. Yung utang na may purpose at may patutungahan na maganda talaga 😇💗

$ 0.01
1 year ago

Ou sis mahirap mangutang tapos maglaho lang na parang bula

$ 0.00
1 year ago

In the other hand, I also not fond of having debt yet but K won't close the door where I also knew someday I will also need that hehe. Sometimes also people lied in creating a debt you think it was for good yet later found out its for a bad hayst.

$ 0.01
1 year ago

Hahaha relate ako dyan, iba ang reason kapag nangutang para maawa ka tapos nalaman mo na lang iba pala ang pinag gamitan

$ 0.00
1 year ago

Ahh that's inspiring, you debited yourself to help you husband ant and some leverage for your family. That's good. Exactly debiting for unconditional things is nothing just extravagance.

$ 0.01
1 year ago

Yes and extravagance is not that important.

$ 0.00
1 year ago

sakto jud maayo nalang gani good debt ning akoa sis.more on needs jud.di ko mangutang pangsunod sa uso or panghanda ug bonggang birthday oi.Di ko magpakanaa para lang iplease ang uban

$ 0.01
1 year ago

Tama man sis kay kung pagkaugma wa nakay sud-an di man ka nila tagaan hahaha

$ 0.00
1 year ago

Mao gyud sis

$ 0.00
1 year ago