Topic 206 – How much debt is too much debt?

I got this from the Post A Day blog. 

I’ve read, for years, that there is good debt and bad debt. Good debt has been defined as the debt one incurs to earn more money (investing in a business, education, etc) and bad debt is debt incurred on depreciating assets (like cars) or in a high interest situation (credit cards). When I was a kid, my dad was big on letting me know that all debt is bad debt. Does anybody still believe in good debt and bad debt? I know I’m leaning hard towards my dad’s view on debt.

2 thoughts on “Topic 206 – How much debt is too much debt?

  1. I am terrified of debt and have a hard time believing that any debt is good. You’re fortunate that your dad taught you about it early. I don’t even think I heard the word until I was an adult and experiencing it for myself. Which explains my fear of it now. Been there and done that and will NEVER do it again.

    • There is nothing like having experience for a teacher. I’ve learned some money lessons through experience that have me in the same mode as you are.

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