The Difference Between Good Debt and Bad Debt
Debt is often shunned by most financial professionals, and for good reason. Many people go into debt for the wrong reasons, and end up spending more money in interest than they would have if they had just paid in cash. However, that doesn’t mean that all debt is bad for your financial situation. Debt can be leveraged to build wealth when used correctly. Used poorly, and it can set you back quite a bit. There’s a difference between good debt and bad debt — and it’s important to understand what that difference is.