Comments on: Good debt vs. Bad debt http://drboycefinance.wordpress.com/2008/11/11/good-debt-vs-bad-debt/ Personal Finance and Money at It's Best Wed, 14 Jan 2009 12:32:39 +0000 http://wordpress.com/ hourly 1 By: charlesthomas87 http://drboycefinance.wordpress.com/2008/11/11/good-debt-vs-bad-debt/#comment-647 charlesthomas87 Tue, 11 Nov 2008 19:19:33 +0000 http://drboycefinance.wordpress.com/?p=630#comment-647 I agree with the existence of seemingly "good" and "bad" debt. I feel, however, that debt should not be classified as good or bad simply based on its type, that is revolving debt, installment loans, etc. Generally, I think that a debt can be either good or bad based on the needs of the products or services purchased by the consumer and the conditions of their purchase, on the financial solvency and liquidity of the consumer, and more so based on the alternative financing options available to the consumer. For example, I would classify bad debt as spliting the enitre purchase price of a vehicle over several credit cards, but using credit cards for small to medium purchases that can be paid off over time or in emergency situations can be "good" debt. Generally though, the idea of the article is sound; consumers should be aware of their debts and how "good" or "bad" they acctually are. I agree with the existence of seemingly “good” and “bad” debt. I feel, however, that debt should not be classified as good or bad simply based on its type, that is revolving debt, installment loans, etc. Generally, I think that a debt can be either good or bad based on the needs of the products or services purchased by the consumer and the conditions of their purchase, on the financial solvency and liquidity of the consumer, and more so based on the alternative financing options available to the consumer. For example, I would classify bad debt as spliting the enitre purchase price of a vehicle over several credit cards, but using credit cards for small to medium purchases that can be paid off over time or in emergency situations can be “good” debt.

Generally though, the idea of the article is sound; consumers should be aware of their debts and how “good” or “bad” they acctually are.

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