Personal Finance

Money Myth: All Debt Is Bad


Money Myth: All Debt Is Bad

Debt Myths Debunked

No, no, no, says John Ulzheimer. The only debt that is "bad" is debt that works against your goals of wealth building. High interest credit card debt is the best example, but not the only example. Stupid debt is also an example of bad debt, like buying an expensive car on a shoestring salary.

But Ron Carson, Founder and CEO of Carson Wealth Management Group has a less forgiving take. He says debt is almost always a negative, with the rare exception of debt that you can get a good return on – such as student loans or a properly financed mortgage.

Of course, it is how you handle your debt that is the key to whether it becomes “good” or “bad,” says Carmen. Manage your debt smartly and it won’t matter.