Decide If Debt Is A Good Or Bad Decision With Two Simple Questions

Debt is a part of life, whether we like it or not. Sometimes, it's helpful or necessary, and other times it's life-crippling for no good reason. You can figure out which one a particular decision is with two quick questions.

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Personal finance blog Money Ning suggests that you can determine whether debt is "good" or "bad" by asking yourself:

1. Is the debt temporary or a lifestyle? 2. Is it worth it?

Buying a car, for example, is temporary and worth it. Buying a new car every time you pay off your loan just to have something newer and shinier is a lifestyle and probably not worth the extra expense:


Debt isn't inherently evil, but it does need to be justified. Obviously, whether something is worth it is a complex question in itself, but if your purchase can pass these two tests, you can have a good idea about whether this debt is going to be a good or bad decision.

2 Questions to Determine If Your Debt Is "Good" or "Bad" [Money Ning]


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