Debt can be a powerful tool if used wisely. Learn the difference between good debt vs bad debt and how each type of debt can impact your financial health.

Good debt, on the other hand, is when you are able to invest borrowed money and earn a higher return than the cost of borrowing. For instance, if your mortgage has a lower interest rate than you ...

Here's how to figure out when to take out a loan, pay cash, use leverage, or pass when something isn't affordable.

Identifying Good vs Bad Debt in Personal Finances Again, good debt can benefit you financially for years to come. And it often comes with attractive terms. Bad debt doesn’t offer the same ...

Not all debt is bad, but knowing the difference between good debt and bad debt and how to use them can help you get ahead financially and stay ahead.

One example of a bad debt expense is when a customer doesn’t pay their invoice. Evan Mann, a credit analyst with Gimme Credit, gave the following example: “Company A sells $100 of goods to ...

That said, a debt consolidation loan is one example of a personal loan that can help you escape bad debt. You can take several high-interest debts and pay them off with a single loan that has a ...

According to Orman, bad debt "is where you are paying for your present day desires, but your costs are going to be your future day needs." The most common example? Credit card debt. It typically ...