There are certain types of debts which can prove to be good for you. The ‘good debt‘ term is used for those investments which will create value later or generate long-term income. In simple words it can be said that loan or purchase on card done for a long term benefit is called ‘good debt’.  One good example of good debt is loan taken for educational purpose. That is loan taken to pay school or college fee. This not only benefits after education in form of high income earning opportunities but it also helps during school time as the interest rates are quite low on student loan as compared to other debts.

Other good example of good debt is buying home on mortgage.Good debt is one which you invest to get bigger asset out of it. On mortgages, Read the full story