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As consumers, we are used to having our pocketbooks pulled in every direction by products that we don't necessarily need but often want. And as time progresses, we often find ourselves waist deep in a pile of bills, payments, and receipts beyond belief. Also known as debt. Yes, debt!
And you may ask yourself, isn't all debt bad? Or, isn't there such a thing as "good" debt?

I don't believe that debt is going to save a kitten from a tree nor will it blow up the world anytime soon, so the concept of good and bad debt is trivial. Debt is simply based on the habits of the user and will have negative or positive affects on that person's credit depending on how that person handles his or her debt.
Do you pay your loans or other credit payments by their due date? Do you limit yourself to only shopping within credit limits? Do you understand that debt is a way to establish credit and not simply buy an impulse purchase? These are all valuable questions we as consumers should ask ourselves.
Having debt can be positive if watched with an open eye and will eventually lead to a lender's faith in your financial stability. Financing a car or taking out a home loan are possible with debt that is continuously supervised. Credit is built as debt is established, paid within its due date, and stays within credit limits, among other factors.
As we accumulate more debt which is handled reasonably, our credit builds which allows us to purchase or finance more "exponential" items such as homes or vehicles. This is positive debt.
On the other hand, living outside credit limits or paying credit payments in a late and unfashionable manner can lead to a an opposite, adverse affect. Lenders will frown upon the ability to handle simple debt transactions and may never give out a loan when needed the most. If they look at your credit report(a person's credit history) and see a long list of credit cards, they may assume that you like to shop outside your means. Having too much credit available will also cause the lender to frown. Thus, a negative debt situation.
Debt is neither good or bad. Debt is simply credit at the beginning of it's life. If nurtured properly, it can lead to beneficial outcomes that lead to bigger better things; however, if consistently abused, you may find yourself pondering whether debt is truly evil personified!
Being a knowledgeable consumer who tracks his or her debt-credit payments, bills, etc.-will never have to answer questions concerning the morality of a simple financial term. We have to take it upon ourselves to accumulate debt responsibly-only keep one or two credit cards and pay the payments on time!-in order to eliminate the one question that does not want to stay buried: Is there such thing as good or bad credit? No. Only responsible consumers and a marketplace full of tempting products.

Learn more about this author, J. Elvin.
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