How do we know whether a loan is a good or bad debt?
A question you need to ask yourself when you take out a loan is; overtime, will this pay me back more than what I originally borrowed? If the answer is yes, then you are investing in a good loan. If the answer is no, then you might want to reconsider if this investment is really worth paying more for in the future.
Overall, not all loans can be easily segmented into the good or bad category. Someone’s good debt maybe someone else’s bad debt. It all depends on your own financial situation and other factors to determine whether your loan is good or bad for you.