Good debt v Bad debt

There are two kinds of debt; good debt and bad debt.

 What’s good debt?

Good debt is a loan that has the potential to increase your net worth. Your net worth is the value of all your assets minus any outstanding debt.

 What is bad debt? 

Bad debt is borrowing money to purchase depreciating assets, like a new car. The second you drive it out of the dealership, it starts losing value. 

You can download our Worksheet here to categorise your debt.  This will help you make a strong resolution to put your house in order and only buy things you can afford to pay for without going into debt. 

We hope our recent series of goal-setting and budgeting has helped you.  We would love to hear your success stories.