• Good Debt vs Bad Debt

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•     For many people, debt is likely to be part of their life. But, many people have a negative view of debt. You probably don't realize there are two kinds of debt, 'good debt' and 'bad debt.' If you think all debt is bad, you ought to learn more about it.

      Haven't you ever wondered how you could afford to buy your own home? A home loan is an example of 'good debt.' 
• This is the kind of debt that will help you make more money. Investing in real estate is a good idea because your house is bound to become more valuable over time. A student loan is also an example of 'good debt' because getting a proper education is likely to help you earn more money than those without a qualification.

      The opposite of this is 'bad debt.' This type of debt is when you borrow money to buy things that will lose their value over time. A loan for a fancy car or using your credit card to pay for expensive clothes and luxury holidays are examples of 'bad debt' and should be reconsidered before you go into debt. None of these purchases will allow you to save or make more money as their value will decline over time.

      Even if 'bad debt' harmed your credit score in the past, it can't have ruined your credit forever. Good money habits, such as saving for big purchases and using 'good debt' responsibly, can improve your credit score in the future.

 Source : Alison