Credit

[Agung]

What are differences between the good and bad debt?

[inlove]

good debt you make money.

bad debt you make others money.

[Maestro]

I am moving this topic from the forum “Thai visas, residency and work permits” to the forum “Jobs, economy, banking, business, investment in Thailand”

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Maestro

[jumnien]

Good debt is debt owed to banks and institutions.

Bad debt is debt owned to mafia-controlled syndicates.

[lannarebirth]

What are differences between the good and bad debt?

Having a low fixed rate loan in an inflationary environment would be an example of good debt. (though I wouldn't do that anymore myself).

Making a Faustian bargain would be an example of bad debt. That, and not paying off your credit cardsw each month.

Edited August 5, 2008 by lannarebirth

[citicredit]

Debt in and of itself is not a bad thing. Both of us were able to start our own businesses because of debt; Steve began his own law practice, and Azriela began her own entrepreneurial consulting business. So we understand what debt is and why some debt is great debt.

Debt that helps you, enriches your life, is manageable, and is not a burden can be called good debt. For example, student loans are good debt if they enabled you to get through school and further your life goals. They are bad debt if you dropped out of medical school after one year to become a writer. A good debt helps; a bad debt hinders.

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