I've come across the term debt before but just heard a phrase "good debt vs. bad debt" a few days ago. Could anybody explain what does the phrase mean and if there is any difference.

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Wise up! There is nothing such as Good or bad debt. Every debt is bad for your financial life. Always assume a singular approach toward your debt.

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Simply, Good debt is investment debt that creates value; for example, student loans, real estate loans, home mortgages and business loans.
 
Bad debt is something, which doesn't help your finances in any way. Rather, turns your financial life into hell (a vacation spent on loan, for instance). 


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