Exjackly

Now that we have discussed what makes up Good Debt in How to decide if something is Good Debt, lets turn our attention to Bad Debt.

Bad Debt can have a lot of elements that make it bad. Sometimes it is just one reason that makes us consider something Bad Debt. Other times, there are multiples reasons. The reason why something is bad has a lot to do with what it will take to fix it and even more to do with how to avoid the problem in the future.

It is especially important to note that whether something is Bad Debt or not is strongly dependent upon a person’s situation. The exact same debt for two different people can be Good for one and Bad for the other. As we go through the categories below, the reasons this is true should become clearer.

I’ve loosely organized these reasons into 3 categories:

• The Motivation Behind Bad Debt
• The Terms of Bad Debt
• Too Much is Bad Debt