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Good Debt vs. Bad Debt (& When to Use Both)


Good debt vs. bad debt is a highly-discussed topic throughout the real estate investing and financial independence communities. While some argue that almost all kinds of debt are inherently bad, many people, including our dedicated data and deli sandwich expert, Dave Meyer, argue differently.

Good debt is used to help you grow wealth, while bad debt is used to fund a certain lifestyle. Sometimes these two types of debts can be confused, but the key factor when evaluating debt is to see whether or not it has a significant ROI (return on investment). Dave walks through multiple examples of good and bad debt, showing you the result of long-term debt use.

Have any horror stories of bad debt? Using some good debt to grow your net worth? Let us know in the comments below!

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Check out Last Week’s Episode on Investor Homebuying:
https://youtu.be/rT3BB415FQE
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2022 Interest Rates Predictions:
https://youtu.be/b82yR9eEdmM
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Debt Is Good When It Comes to Real Estate:
https://www.biggerpockets.com/blog/good-debt-real-estate
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How to Pay Down Bad Debt:
https://www.biggerpockets.com/blog/pay-off-debt-fast
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Join BiggerPockets Pro for Up-to-Date Analytics and Articles:
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00:00 Is Debt Good or Bad?
01:32 What is Debt and How Does It Work?
02:26 Bad Debt Examples
10:23 Good Debt Examples
16:17 Is Now the Time to Get More Debt?

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Written by mettablog

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