Segregating debts into good and bad debts will help borrowers to have better debt management. Some debts are more favorable than other debts. Some debts may be a good investment and they are definitely good debts. Some debts may ruin the reputation of the borrower and they are bad debts. A debt availed for purchasing of any property which has appreciation value is definitely a good debt. The value appreciated may be more than the debt borrowed. Thus, this kind of good debt will have good credit report and generate profit for the borrower. Debt borrowed for purchase of a house or housing site is a good debt as the value of the house will appreciate year after year. A loan taken for a student0s higher education is a good debt as education will serve for individual and nation building. Any debt which creates unhealthy financial situation and do not have any appreciation in value is a bad debt. Credit card debt is usually a bad debt because the items purchased through credit card are consumed fully and do not have appreciation in value. Credit card purchase is […]

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