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Good debt and bad debt, is there such a thing? It's truly a matter of perspective. For example, a pessimist might say all debt is bad and ask why you would want to owe anyone anything at all. Where as an optimist such as I might go down a different path, asking what the debt is for. I find it difficult to believe that one could go through their whole life never acquiring even the most minor of debt. Surely you need shelter and transportation to and from your job to pay for that shelter? That can't always be paid for in cash. Also what about the sort of debt that is really more like an investment? I call these types of debt necessary or "Good" debt. Then there is the kind of debt where you owe a substantial amount of money to a lot of people for all the wrong reasons. That is called unnecessary or "Bad" debt.

Also there comes the question to my bright optimistic mind: MUST it be financial debt? What of emotional debt? Someone who was there for you when a loved one died deserves the reassurance that you would do the same for them. Could a person not be in debt for something besides finances, such as owing someone a favor in return for their help? I, being the responsible adult that I am, find good reason to repay all my debts financial and otherwise. I consider my situation before I begin to think that all debt is bad. I once borrowed $2,000 from my father to pay off some fines, and as it turns out my determination to pay him back caused our bond to get stronger as parent and child. He saw how hard I was working to hold up to my responsibility, and he favors that sort of behavior. My best friend of 15 years was my maid of honor and made my special day as smooth and easy on me as it could be, as did my mother. I owe them an emotional debt to show them the same support when the time comes that they should need it. I consider that an honor, and a good debt to be in! I couldn't pick a better person to owe love to than the women in my life!
Back to the subject of financial debt, if you take out a loan for $200,000 to pay for a home, as long as you can afford the monthly payment to pay back the loan, you are in good debt. If you gamble and acquire a debt of $200,000 to a casino you are also into a case of bad debt. Once they monthly payments begin to exceed your income, then you have a bad situation brewing. So my answer to the question of whether or not there is such a thing as good and bad debt is yes my friends. It all depends on how you see and handle the situation before you!

Learn more about this author, Amelia Borden.
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