How well do you know about loans comrades? Meshers there is no such thing as good debt or bad debt — Debt can be both beneficial or harmful depending on how you use it.

“Good debt” is money you borrow for something that can appreciate in value, increase your income or net worth, or enhance your life.

• This includes debt that you take on to finance an education, buy a home, or start a business.

• Good debt typically has a low-interest rate and a fixed repayment schedule.

“Bad debt” is money you borrow for something that you consume, depreciates, or does not help you make progress — it’s debt that doesn't help you achieve your financial goals.

• This includes debt that you take on with credit cards to finance discretionary consumer purchases, such as vacations or new cars.

• Bad debt typically has a high-interest rate and a variable repayment schedule. #Debts #loans