What is Good Debt
Not all debt is create equal, some of it actually moves you forward
Good debt is debt that:
Increases your long-term earning potential
Builds an asset (like a home or business)
Helps you access something necessary (like reliable transportation)
It usually comes with:
Lower interest rates
A clear return on investment over time
Predictable payments
Examples of good debt:
Student loans (with a plan): If the degree leads to a career that pays you back long-term, it’s often worth it.
Auto loans: A reliable car can help you get to work, earn income, and live independently.
Home loans: A mortgage can help you build wealth through equity.
Business loans: If used to grow a business with a revenue plan, it’s an investment, not just debt.
Final Thought: Good debt is a tool that can help you build the life you want, as long as you use it wisely and with a plan.
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