- Green Member
- Posts: 7
- Joined: Wed Jun 18, 2008 2:07 am
- Location: INDIA
The good debt is any debt that is used to grow assets and is tax deductible. If accelerated wealth building is your goal, it’s ok to keep a balance on good debt as the low interest after the tax deduction is a way to grow your wealth via other peoples money.Bad bebt is the debt that you want to avoid at all costs as it will drain your cash flow, grow against you, and reduce your net worth. If you have this kind of debt, you’ll want to pay it down as fast as possible.