Good Debt vs Bad Debt

Not all debt is equal. Good debt has low interest rates and builds long-term value: Home loan at 8-9% builds an asset, education loan invests in your earning potential, business loan funds growth. Bad debt has high interest and funds depreciating things: Credit card at 36-42% per year is the worst, personal loans for vacations or gadgets at 14-18% drain wealth, BNPL and EMI on consumer goods add up silently. The rule is simple: if the debt earns you more than it costs you, it is good. If not, eliminate it as fast as possible.