What Is Good Debt?
Debt can be a good thing if it adds value to your life. In this post, we will be explaining what is good debt.
When you consider good debt, you need to think about what the debt will be helping you with. Will the debt increase your net worth, or will it become an income-generating tool? If you answered yes to any of these two questions, then you have good debt!
Few Examples Of What Good Debt Is
- Small business expenses
- Student loan debt
- Mortgage loans and real estate investments
- Debt to buy any profitable investments
These examples will all add value to your life in the long run. Whether it’s to pay for your education to better your career or invest in your business to promote growth, you are essentially adding value to your life and finances.
Good Debt Have Positive Impact For Your Future (in a long run)
Good debt positively impacts your credit history, allowing you to buy bigger items such as a house. Good debt is an investment for your future, so handle your debt correctly, and you’ll positively impact your financial wellbeing!
Feel free to check out the same content in our explainer video at YouTube about what is good debt.