What is Bad Debt?

Bad debt is debt that typically carries a high interest rate and is incurred to purchase items that depreciate in value. Credit card debt and auto loans are the most common forms of “bad debt.”


See Also:

How I Ditched My Debt For Good

Is Your Debt Ratio Healthy?

Ask An Advisor: How to Recover Financially From a Divorce

A Hands-On Way to Pay Down Debt

My First Step Out of Debt

Get Out of Debt — It’s G.O.O.D.

Web Tools for an Effective Debt Diet

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