debt

7 safe borrowing tips to keep debt in check

What is bad debt?
Next
7 of 11
Back
What is bad debt?

The term bad debt refers to borrowing to pay for items that depreciate in value, such as credit cards and auto loans.

Today's borrowers have to toe a fine line, Feddis says. They should be wary of overextending, but they should also acknowledge that even bad debt can be good in moderation.

"When credit is used responsibly, it has great value," she says. "It can build wealth, or be used for emergencies or for getting through a rough time. But it is important to understand what the commitment is."


 

 

advertisement

Show Bankrate's community sharing policy
          Connect with us
advertisement
CARDS WEEKLY NEWSLETTER
Credit cards on a table

Get advice for managing credit cards, building your credit history and improving your credit score. Delivered weekly.

Debt Adviser

Pay off $30K in card debt

Dear Debt Adviser, What is the best way to get rid of credit card debt? Due to a job income decrease, I have added to my credit card debt over the last two years. I rarely use the cards anymore. I pay the recommended amount... Read more

advertisement
Partner Center
advertisement

Connect with us