What are Good Debts & Bad Debts

The amount of debt in most countries, no matter where you look in the world, is increasing.

People are increasingly getting into debt and this is a worrying sign for most governments. One of the reasons for this is that credit is much easier to obtain than ever before. Banks are sending out credit card approvals through the mail and are working hard to encourage people to use credit cards for their purchases and unfortunately get them into debt.

Only a few years ago credit card issuers (such as banks) used to look for customers who were of a reasonable financial standing and would only issue credit cards to those who could repay and who had a good credit rating.

There is such a thing as good debt and bad debt. The good debt and bad debt principle is something people need to learn.

Basically, it’s okay to take on a debt if it is for a good purpose and produces a good return. Many people borrow money to invest in business opportunities and they sometimes end up making a profit on their investment after repaying the loan.

In general, debt is something you should stay away from. If used correctly...

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