Good Debt vs. Bad Debt Is there really such a thing as “good debt?” 

Is there really such a thing as “good debt?” Let’s peg the average return on your investments at 10 percent. Any debt that costs you less than 10 percent is not really bad debt as you crunch the numbers. This is true as long as your money is being directed into investments that truly earn you more than what you are paying to service debt. So the first goal is to pay off all debts that are higher than your investment returns.

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