hello sir,
0:55 Distinguish between Bad Debt and OK Debt
OK Debt has an interest rate well under 10%—preferably with some tax advantages to boot. In the best case, what you bought with borrowed funds will appreciate in value. Home mortgages and student loans are examples of OK Debt. Automobile loans are on the border: They often satisfy the low-rate piece, but automobiles almost never appreciate in value. Bad Debt is everything else—from your titanium credit card to the 35% loan from Larry’s Kwik Kash.