Good debt is defined as debt taken on to increase income or net worth over time, such as education loans, mortgages, and business loans, because these scenarios provide a return on investment. Bad debt is defined as debt that does not generate future income and often finances non-necessities, such as high-interest credit card debt, payday loans, and rent-to-own agreements.

Authors

• Person: Not available Organization: Champlain College
  Financial Rules of Thumb: Your Money Management Cheat Sheet

Sources

• Financial Rules of Thumb: Your Money Management Cheat Sheet www.champlain.edu Champlain College via serper

Referenced by nodes (3)

• credit card debt concept
• mortgages concept
• payday loans concept