Good debt bad debt

[Elswitcher]

Reasons why you should not take a loan...
1. To pay for products that don't bring in money afterwards.
2. To invest in a business you have not leverage over.
3. To invest in a business you aren't sure of.

 

[Good luck]

Good debt is a debt that can be recovered from the lender within the stipulated time given for such loan or money while bad debt is a money that can never be recovered,it may be loan from a company or a relative.

 

[btaliat]

As a business owner ,we must always run from having bad debt. There are customers that will surely patronize us on credits. These customers may be unable to repay the debt due to the fact that the money has accumulated to the stage that it won't be too easy to repay. This will become bad debt for the business owner. And if the business owner is not careful, if will lead to folding up of the business.

 

[Mataracy]

Good debt said to be good when the money or loan collected is really helping you to make good money from the business you are doing .
Whenever some body is collecting loan the target of what to use the money for and make sure that its what will yield good profit after doing the business.

Debt said to be bad when one can not account for any gain from th3 business one use it for. So to pay back the debt will seriously become a tough time for the person.

 

[Mellorando]

Good debt has the potential to increase your net worth or enhance your life in an important way. Bad debt involves borrowing money to purchase rapidly depreciating assets or only for the purpose of consumption.
How to deal with good debt. Even good debt can become bad debt if you don't keep how much you borrow under control. Always have a plan for paying off debt eventually (even good debt) and try to pay off the more expensive forms of good debt before the cheaper good debt.
Examples of good debt are taking out a mortgage, buying things that save you time and money, buying essential items, investing in yourself by borrowing for more education or to consolidate debt. Each may put you in a hole initially, but you'll be better off in the long run for having borrowed the money.