Mika
VIP Contributor
Debt can be bad debt or good debt. If you use debt to generate income, your debt can be good debt, for instance, if you bought a house that saves you money on rent as well as earn you rental income, it is good debt. Be cautious about borrowing for non-productive purposes, as it can lead to bad debt. For instance, if you borrowed to buy a car, it is bad debt. Smart borrowing is when you borrow for investments or starting a business that can yield profits, enabling you to repay the loan and make gains at the same time. Borrow smartly by using loans to contribute positively to your financial well-being.
