@Prettybee123
edited
Is Debt Really That Bad?
Oftentimes, debt is perceived as a negative thing. However, debt isn’t always that bad. There are some kinds of debt that can be considered as good. In this article, you will find out more about these debts. Debt can be catergorized into two— the good debt and the bad debt. Let us define the two. **So, what is good debt and bad debt?** ***Good debt*** is described as money due for items that can contribute to wealth accumulation or income growth over time, such as business loans, mortgage loans, or student loans. The term ***bad debt*** refers to items such as credit cards or other consumer debt that contribute nothing to your financial well-being. These are usually appropriated for something luxurious rather than a need or commodity. **What are the kinds of debt that can be considered as good debt?** **Business Loan** There are many businessmen who are able to achieve business success with debt as their source of capital. When the business will run smoothly and accordingly, the debt will significantly enhance the income and productivity of such a business. Eventually, the business will have enough money to pay the obligation associated with the business loan. Moreover, businesses often have no significant cash or liquid assets for business expansion. In these instances, business loans are also quite helpful. **Student Loans** If you’re a student and don’t have enough money to sustain your education, then you can opt for student loans so that you can receive a good education. When you have a good education, there is more chance for you to have a good paying career. You should borrow as little as you need, live within your means and go to a university and earn a degree where there’s a certainty in such a way that you will be able to pay the student loan. **Mortgage Loans** Most people who have an average paying job usually don’t have enough savings to purchase a house. Opting for a mortgage for a house could be a great investment. However, only buy a house that you can afford to pay in the long run. You should settle into a house with basic features. House mortgage can become bad if the person applying for it decides to buy a luxurious house which is not usually within their budget.
***All other debts other than these are pretty much all the debts that you don’t need*** **My conclusion** Debt isn't always a negative thing, since it enables you to reap the benefits of other people's hard work while repaying them. As long as you don't purchase more than you can afford, you'll be able to save a lot of money. There's no stress like crushing debt, and purchasing less than you can afford may keep you out of a lot of the financial binds that afflict our society today. @Photos are from pixabay
17 comments
I don't have any of this but I'm happy to pay my debts using rc xd
I'm glad to know, my friend. Me too, friend. Thanks to rusty
True sis. Not all debts are bad. There are goods also like you've mention sis. Some people have a debts to use it for the goods, like building foundation to the children. It's really helpful but those debts that use only for a nonsense things or not usable these are the bad debts.
Agree ako lahat sayo sis. Matuto tayong mabuhay within our means.
Yes sis that's true. Thank you sis.
You're welcome siz
Yes, hehe and unfortunately I have bad debts.
That's okay friend so long as you work hard to pay it off.
Debts are part of life but we must that we will be able to pay in the future to avoid problems.
I agree, my friend.
Hindi naman po..depende siguro kung paano natin mina mqnage ang debt na pinasukan.but thanks this article I'ved learn alot.😊
I agree with you po. Thank you po.
Yes, I agree. Not all debts are bad.
Thank you, my friend.
🤍🤍🤍
For me debt is so useful, thru these, i have all the things in my house...and also my house I acquire thru debt...it helps a lot like us who are low income earners.
I believe that too, friend. Debt is useful as long as you work hard to pay off such debt.