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7 safe borrowing tips to keep debt in check

What is good debt?
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What is good debt?

Good debt is traditionally defined as borrowing to pay for something that appreciates in value, such as a home, business or college education.

But does it really have to be a good debt or bad debt?

Instead of viewing debt in black and white -- as good and bad, perhaps it should be thought of as bad debt and better debt, says Tim Maurer, vice president of Financial Consulate, a Baltimore financial advisory firm and co-author of "The Financial Crossroads."

"I don't think we should be romantically embracing any form of debt," he says.

Still, there are ways to keep good debt in check and to use bad debt's powers for good. Here is a strategy for taking advantage of good debt.


 

 

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