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7 safe borrowing tips to keep debt in check

What is bad debt?
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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."


 

 

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