Debt is not automatically good or bad. Its impact depends on the cost, repayment terms, purpose, and effect on your long-term financial position.
Potentially productive debt
Borrowing that supports education, a business, or an affordable home may create future value, but it still requires careful analysis.
Riskier debt
High-interest credit card balances and loans used for routine consumption can become expensive quickly. Compare the interest rate, total repayment cost, and whether the payment fits your budget before borrowing.
