Good Debt vs. Bad Debt: What You Need to Know Now

Wondering what the difference is with good debt vs. bad debt? Here's what you need to know about it.We need to talk, because the good debt vs. bad debt information you see out there a lot is often completely inadequate. So, get ready for a point of view you may not have heard before.

First though, since you’re probably wondering what the difference is between good debt and bad debt, let’s go over the standard definitions of the two. Those definitions will be important for what comes next.

What do people consider good debt?

Good debt is usually defined as money you borrow in order to invest in your future or to buy an appreciating asset.

(An appreciating asset is something you buy that you believe will be worth more over time.)

So the idea is that borrowing now can help you make your life better in the future or grow your net worth.

From that point of view, student loan debts are “great” because you might be able to get a better job with a degree.

Likewise, a mortgage could be thought of as good debt because real estate may be worth more as time goes on. (And you need somewhere to live anyway.)

Also, “good debts” usually have lower interest rates compared to other kinds of things you might borrow for. (Which is not the same thing as saying the interest rates are usually low. They may or may not be.) So you might also consider it to be debt that costs you less.
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How to Overcome Student Loan Debt as a Couple: 6 Tips for Success

We paid off $47,000 in student loan debt in 6 monthsIf you’re married with student loan debt, you’ll want to read Fo Alexander’s debt free story below. She paid off over $78,000 in student loans at a great clip.

First $31,000 prior to getting married, and then she really kicked it into high gear after joining forces with her husband. They paid off the remaining $47,000 in just 6 months!

Along the way, Fo learned some valuable tips about how to overcome student loan debt as a couple. Here’s her story, along with 6 tips to make paying off your student loans go so much more smoothly.
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How to Speed Up Debt Repayment With One Simple Trick

How to speed up debt repayment with one simple trickIf you’re looking to speed up debt repayment, using an everything’s negotiable mindset can help. You see, getting out of debt basically requires three things. You have to:

  1. quit borrowing money
  2. stick with your debt payoff plan (which really means getting back on the wagon if you fall off)
  3. and sometimes say no to some stuff that you might otherwise have said yes to

It’s that last bit we’re going to focus on here, for those who really want to speed things up.

Because while saying no really only has to mean saying no to new debt, it can go a whole lot further if you like.
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Conquering Student Loans Crazy-Quick On a Non-Profit Salary

Joyce Chou - Conquering student loans crazy-quick on a non-profit salaryGot student loans on a non-profit salary or other low income? You’re not alone. But in Joyce Chou’s case, her loans entered repayment with an unexpected twist.

It was summer of 2015, and Joyce had just returned to the US after spending nearly a year teaching English in Taiwan. She’d been there on a Fulbright grant following her college graduation.

It was time to start her new job working as a grant-writer at an education non-profit in Houston. She was looking forward to starting work back in the US and getting settled in an apartment.

There was just one problem.

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