The Star: Good Debt, Bad Debt

This article highlights the difference between good and bad debt. Identifying bad debts will enable you to focus on eliminating them quickly and reduce the chances of your quality of life being affected. Kimberly equates debts to fire; when properly managed it can help you, however if left unchecked it could become disastrous.

Kimberly interprets good debts as debts that will make you financially better and serves a greater purpose with future equity or earnings potential. Bad debts generally make a person financially worse off. In the article she provides a few examples of good and bad debts. An important point to note is that the debt should generate more returns than its borrowing cost in order for it to be considered good. 

This article can be found online here.