If you need assistance, please call 912-737-2935

Good Debt | The Trisha Cook Team Blog

Wednesday, August 16, 2023   /   by Jiselle Bersabe

WEALTH BUILDING THROUGH REAL ESTATE: Bad Debt vs. Good Debt

Understanding the difference between good debt and bad debt is crucial for achieving financial success. Let's delve deeper into these two concepts:


Bad Debt

Liabilities that deplete your financial resources without creating an income stream are referred to as bad debt. Essentially, it is debt that has no long-term worth or usefulness. Car loans, credit card debt, and expenses associated with unhealthy behaviors are common instances of bad debt. The issue with bad debt is that it gradually destroys your net worth as you continue to make payments while receiving no significant return on your investment.

Good Debt

Good debt, on the other hand, is when you borrow money with the goal of generating an investment that generates income or increases in value over time. It involves borrowing money to purchase assets that have the potential to enhance your financial status. Real estate investments are often considered as good debt since they can generate consistent cash flow throug. ...

  savannah, ga, pooler ga real estate, pooler ga real estate advice, richmond hill real estate, effingham county ga real estate, real estate investing, real estate investment, wealth building, investors, bad debt, good debt