Good vs. Bad Debt

Author: Boychuk Mortgage Group |


Not all debt is bad… in fact there are some forms of debt that are positively impactful on your financial future, help generate income, and grow your net worth.

✔️For Instance, having a primary residence with a mortgage helper that allows you to earn equity, and pay down your mortgage instead of a landlord’s mortgage can be considered good debt.

✔️Using a Home Equity Line of Credit to purchase an investment property that allows for monthly cash flow, mortgage pay down, & appreciation is good debt. The HELOC’s interest is also a tax write off.

✔️Using a line of credit to complete renovations that increase the value of your home is good debt.

✔️Although debatable, a student loan can also be considered a good debt if the eduction is used to enhance one’s financial earnings.

❌Bad debt, as you can guess includes consumer debt/consumable assets, car loan, or loans on depreciating assets like a boat. It can also include any types of loans that are high interest.

Reach out to learn more about consolidating debts 🙋🏼‍♂️