Comments on: “Good Debt” Doesn’t Exist

By: where to invest online

where to invest online — Sat, 22 Dec 2018 10:04:28 +0000

It's hard to find knowledgeable people about this subject, however,you sound like you know what you're talking about! Thanks

By: Alyssa

Alyssa — Wed, 27 Sep 2017 14:23:02 +0000

In reply to Bernz JP.

Absolutely, investment debt sounds much better to me ;)

By: Bernz JP

Bernz JP — Sat, 23 Sep 2017 10:46:39 +0000

Excellent topic. I can only think of two debts which can be considered a not so bad debt. Still not fully convinced that they should be called good debt. Possibly investment debt?. These are student loans and business loans.

By: The Millennial's Guide to the Best Personal Finance Articles - Saving with Spunk

The Millennial's Guide to the Best Personal Finance Articles - Saving with Spunk — Thu, 02 Mar 2017 22:43:45 +0000

[…] Why Good Debt Doesn’t Exist by Mixed up Money […]

By: Alyssa

Alyssa — Wed, 15 Feb 2017 16:00:23 +0000

In reply to Tim Jordan.

Unnecessary debt is a great way to look at it. I totally know what you mean about trying to find the funds to purchase a home. Doing that in one swing is, well, near-impossible.

By: Tim Jordan

Tim Jordan — Tue, 14 Feb 2017 13:04:54 +0000

I've never been fond of the term "good debt" either. I love that you brought up the fact that it's a sales tactic. I agree! To that end, I don't really like the term "bad debt" either for two reasons. First, people feel bad enough about debt without the need to call it "bad." Second, I feel calling it bad debt will make people say "I really need to go out and get some good debt!"

I like to call it necessary and unnecessary debt. The only necessary debt that I can think of is a mortgage because it's really hard to save up enough cash for even a small home. Every other debt, including student loan debt is unnecessary.

Great article!

By: Alyssa

Alyssa — Fri, 27 Jan 2017 21:17:05 +0000

In reply to Russ.

I actually really like the term necessary debt. I can dig it ;)

By: Russ

Russ — Fri, 27 Jan 2017 13:32:05 +0000

Interesting article and I'd definitely concur that all debt belonging to a person is bad debt, I'd also add into the equation the term ' necessary debt '. Not many people who wish to be homeowners have hundreds of thousands of dollars sat around for when they find their dream home or are able to pay their way through college or university without having to borrow to fund it. So I think this needs to be taken into consideration when banding around the term 'bad debt'

By: Mike

Mike — Sat, 14 Jan 2017 03:58:56 +0000

In reply to Mike.

Hit submit too quick. Corrected below.. "As you illustrated – a mortgage, or a student loan that results in a great career – are a couple examples I’d agree with."

By: Mike

Mike — Sat, 14 Jan 2017 03:57:59 +0000

Great post. I’m pretty close in opinion – I wouldn’t personally consider ANY debt “good” – but some does bring benefits that outweigh the weight of the debt itself. As you illustrated – a mortgage, or a student loan that results in a great career – are a couple examples I’d illustrate.
That being said, I have a mortgage and while my home is worth significantly more than what I owe, I still don’t consider it good debt – it was a necessary evil because I couldn’t pay cash. I just lucked out that my property (and the market) appreciated and we timed the purchase right.

The closest thing to “good” debt that I can personally think of, is reward credit cards. I often take them out, meet the minimum spend, earn a bunch of points, travel, and close them a year or two down the line. My credit score has actually jumped up after doing this, and I get free travel. In all fairness, I don’t carry balances on this, so whether or not you’d consider it debt, is up to you. I’m not saying it’s for everyone (it requires a lot of discipline and thought) – but in my case, I feel that I’ve been rewarded for taking on “debt” even though I technically owe nothing. Just my $.02 🙂

Keep up the great work.