How Can Debt Be Good?

Is there such a thing as "Good Debt"?

The words "good" and "debt" don't seem to go together. However, major expenditures such as a car or a home are rarely made without the use of a loan. Debt incurred as a result of irresponsible expenditure, on the other hand, can only be detrimental. Justifiable loans, on the other hand, can improve your quality of life, and a more nuanced understanding of their impact might help you decide if taking one out is worthwhile.

What is the mechanism of good debt?

If you saw Season 5 Episode 12 of The Fresh Prince of Bel Air, you may recall Uncle Phil exclaiming, "My money makes money!" Uncle Phil was referring to how he will recoup his investment plus a little more in that line! When you put your money into a good cause, you can get a return that is more than the amount you put in. Borrowing money to invest in these worthy projects in the future for a larger payout is an example of good debt.