EssentialsApril 2, 20265 min read

Understanding Debt and Borrowing

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Gollak Team

Family Finance Experts

Debt can help or hurt - know the difference!

Good Debt

  • Education loans (invest in yourself)
  • Home mortgage (builds equity)
  • Business loans (creates income)

Bad Debt

  • Credit card debt for wants
  • Borrowing for depreciating items
  • High-interest loans

Golden Rules

  • Only borrow what you can repay
  • Avoid high interest rates
  • Pay off debt as fast as possible
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