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good debt versus bad debt
bad debt examples and explaination
- credit card debt
- car loan
- personal loan
if you borrow money for anything that goes DOWN in value , it is a bad debt . cars never appreciate in value ( some notable exceptions – collectible cars , antique value cars ) – they always go down , clothes , phones and anything purchased on credit cards always go down in value .
an example of good debt is home loan or mortgage
homes generally appreciate over time – due to various economic factors such as an increase in population
the percentage of home appreciation depends on a lot of factors like proximity to good schools , shopping , groceries , restaurants , etc