Yusra3
VIP Contributor
The world has a lot of different types of debt, but here are the most common:
1. Good debt
This is any kind of debt that you use for a good purpose, like buying a house or starting a business.
2. Bad debt
This is any kind of debt that you use for an unproductive purpose, like buying drugs or gambling.
3. Everyday bills
These are things like rent, utility bills, and credit card payments. they're not going anywhere!
4. Emergency funds
You should have at least three months' worth of living expenses saved up in case an emergency happens (like job loss).
5. Savings accounts
These are where you keep your extra cash so that it doesn't get spent on frivolous purchases (or so you can use it later when needed).
6. Assets
These are things that have value like your car or home and they can be used to pay off debts and create wealth over time.
Good Debt Vs Bad Dedt:
1. Good debt
Good debt is the type of debt that you use to purchase something that you really want and can afford to do. You use good debt when you have a goal, but need some help paying for it. Good debt might be used by someone who wants to go back to school, buy a new car, or start a business. It’s also known as “investment” or “productive” debt because it helps people achieve their goals.
2. Bad debt
Bad debt is any other kind of unsecured loan that you take out, like credit cards or payday loans. These loans are not backed by collateral and they can hurt your credit score if you carry them over time. You might think that bad debts are okay because they are short-term and easy to pay off in full each month but this isn't true! Bad debts can actually lead to more problems down the road if they aren't paid off quickly enough and don't get reported on your credit report correctly.
1. Good debt
This is any kind of debt that you use for a good purpose, like buying a house or starting a business.
2. Bad debt
This is any kind of debt that you use for an unproductive purpose, like buying drugs or gambling.
3. Everyday bills
These are things like rent, utility bills, and credit card payments. they're not going anywhere!
4. Emergency funds
You should have at least three months' worth of living expenses saved up in case an emergency happens (like job loss).
5. Savings accounts
These are where you keep your extra cash so that it doesn't get spent on frivolous purchases (or so you can use it later when needed).
6. Assets
These are things that have value like your car or home and they can be used to pay off debts and create wealth over time.
Good Debt Vs Bad Dedt:
1. Good debt
Good debt is the type of debt that you use to purchase something that you really want and can afford to do. You use good debt when you have a goal, but need some help paying for it. Good debt might be used by someone who wants to go back to school, buy a new car, or start a business. It’s also known as “investment” or “productive” debt because it helps people achieve their goals.
2. Bad debt
Bad debt is any other kind of unsecured loan that you take out, like credit cards or payday loans. These loans are not backed by collateral and they can hurt your credit score if you carry them over time. You might think that bad debts are okay because they are short-term and easy to pay off in full each month but this isn't true! Bad debts can actually lead to more problems down the road if they aren't paid off quickly enough and don't get reported on your credit report correctly.
