What are differences between the good and bad debt?

[Jack]

Good debt has one more letter in it that bad debt.

[Doug_Tipple]

Yes, I understand that the question is spam, but, regardless, answering the question, I think that a debt you assume to buy essential commodities, such as a car, tools for your work, or a house to live in is good debt, given that the interest rate is not extravegant and the borrower has the means to pay back the loan. Without borrowing the money you could not otherwise afford to buy these commodites that you need to live. For example, you need tools to do your job in order for you to earn money. You can't wait until you have money to buy the tools.

Bad debt is debt assumed for non-essential items, where the debt puts the borrower in a financial precarious position. Wasting needed income on unnecessary interest payments and financial insolvency due to the overwhelming debt burden are two results of bad debt.

[rh]

..

[Nanohedron]

This is probably gonna end up deleted with prejudice, folks. Looks like there's a class of 'bot out there I never though would happen soon. Guess we have to wake up and smell the spam.

i saw this type of no-link spam quite a bit on a forum i moderated. i'm not sure what to make of it, though it could be that it hides any links from general view but the web-crawlers are able to see them. or maybe not.

This will be a matter for the Geek Oracle. Or somebody like that.

Oh, dear. I misspelled "thought".

[SteveK]

Guess we have to wake up and smell the spam.

[MTGuru]

i'm not sure what to make of it, though it could be that it hides any links from general view but the web-crawlers are able to see them. or maybe not.

Nope, no hidden or deleted links. What you see is what it is, in all its Zen-like splendor. The poster (or posting computer) is in Indonesia.

[Nanohedron]

This looks good:

[Lambchop]

Next time you're in the tuna aisle, look for the pouches containing a single slice of Spam.

What kind of person would think up something like that????

[mutepointe]

It's probably cheaper to just buy a whole can of Spam and throw away what you don't eat.

To answer the question:
Good Debt: When your wife loses a wager to you.
Good Debt: When you get 0% financing from a car dealer and then through an oversight on their part, you get a really good deal. And the salesman still has to send us a Christmas Card every year. Ho Ho Ho.
Bad Debt: All my other debts.

[djm]

I'm sure each country has various income tax rules, so not everything applies or makes sense to others, but here, I can borrow money to invest, and deduct the interest paid on that loan from income tax. A really popular option is to buy up junk realestate, crumbling wrecks you'd never be able to use or rent, and deduct the property taxes from your income tax as business losses. There are lots of gov't sponsored investment schemes, as well, that have tax advantages. These are all what I would term "good debt" in that they are all investments, even thought on the surface they look like debts.

djm

[cowtime]

Debt is not good. Period.

Spend $10 on something to keep from sending $3 to the IRS?
Or to make it worse, Borrow $10, and make payments plus interest on that amount, to keep from sending the IRS $3?

Nah. I'd rather save the $10, pay the $3 tax and do what I want, with the $7 left over. I can do what I want with that $7 since I don't owe it to someone else.

[citicredit.asia]

Debt in and of itself is not a bad thing. Both of us were able to start our own business because of debt; Steve began his own law practice, and Azriela began her own entrepreneurial consulting business. So we understand what debt is and why some debt is great debt.
Debt that helps you, enriches your life, is manageable, and is not a burden can be called good debt. For example, student loans are good debt if they enabled you to get through school and further your life goals. They are bad debt if you dropped out of medical school after one year to become a writer. A good debt helps; a bad debt hinders.

[MTGuru]

Fascinating. This time I did remove the links. Posted from the same IP in Indonesia.

Nano, care to zap the links in the siggy / profile?

[Redwolf]

Debt is not good. Period.

Spend $10 on something to keep from sending $3 to the IRS?
Or to make it worse, Borrow $10, and make payments plus interest on that amount, to keep from sending the IRS $3?

Nah. I'd rather save the $10, pay the $3 tax and do what I want, with the $7 left over. I can do what I want with that $7 since I don't owe it to someone else.

Amen. Been in debt. Paid off the debt. Am much happier (and more secure!) without the debt.

When you owe money to someone else, regardless of the short term benefits, in the long run, you still OWE that money (plus interest). If the proverbial sh*t hits the fan and you have a major financial tragedy in your life, you still owe the money (and the interest). If the economy takes a major downturn, you still owe the money (and the interest).

Sometimes debt may be unavoidable. I had to borrow money to go to college...that was a fact of life. It didn't make the debt "good." It would have been much better if I'd been able to attend college without borrowing. And it was wonderful when that debt was finally discharged. Sometimes people have to borrow to obtain the tools they need to work. That's not "good debt," it's (sadly, in the times in which we live) "unavoidable debt." Or, as I said, "all debt is bad, but some debt is badder than others."

I can't begin to describe the relief that comes from knowing you owe nothing (financially) to anybody. We're three years now living entirely within our means, and owing nothing, and I wouldn't begin to trade.

Redwolf

[s1m0n]

Good debt: I spend, you pay.
Bad bebt: I spend, I pay.