Oh, and by "good debt" (which is an actual term) I meant this- yes, copy/paste front the interwebs. "There can be good debt as well as bad debt. Good debt can be described as debt that helps you build equity or increase your net worth. For example, education loans usually are considered good debt because in the long run more education generally translates into higher earning power. Most people borrow money for a mortgage to get a home—if the home purchase was a wise investment that increases in value and adds to your net worth, then it would be considered good debt. Another example of good debt might be loans to run a small business—for example, if you borrow money at 7 percent and use that money to make a 15 percent or 20 percent return, then it would be considered good debt because you are using the loan to increase your net worth. Good debt includes loans that help to build your financial future.