Difference between Good Debts and Bad Debts:
Every time I see or listen to the word "debt" alarm bells in our heads and actively looking for a way to escape. The first thing to understand is that debt is not always bad, and does not mean you are in trouble. For lots of, the debt could be a loan or mortgage, or a huge expense incurred. However, it is necessary to recognize that there are different kinds of debts, both different and polar opposites of each other!
You can not worry thinking that both are the same, so the first thing to do is learn about the forms of debt, nice debt and bad debt. All it takes is for you to plan, prepare and act accordingly to have a secure future, at least when it comes to finances
Bad Debts:
Let's look at what is a bad debt is first before we talk about good debt! The bad debt is the kind of debt you invest the money, but nothing is gained. It might also be the class to spend more on the product than the actual cost of the product.
For example, imagine you buy a DVD that costs $ 40 by credit card. You will be charged 20% more if you do not pay the bill on time. What this means is that you have paid more than the value of the DVD and therefore lost much more money. This is a classic example of bad debt. Another example would be if you drive into debt to pay for a holiday, then it will hurt you badly.
Bad debt stems from overspending, going overboard in activities / things that are not needed and