2007-02-27 14:27:36 · 4 answers · asked by leonard1 7 1 in Business & Finance ➔ Personal Finance
I was going to be really "cute" here and say
that it is my ex's true hidden agenda --- but---
There are two explainations for the term
One is given to any debt that has reached critical mass and has become unmanageable for an individual who is owing it !!
The other is when the term is used by the people that the debt is owed TO-- in this case it is when the money owed is simply not being paid and / or is unlikely to be paid !!!
2007-02-27 14:40:43 · answer #1 · answered by Anonymous · 0⤊ 0⤋
Bad debt is debt that cannot be easily payed back in an emergency. For example, borrowing 50,000 for a Rolex is bad debt, cuz if you can't make the payments all of a sudden, no one is really going to be interested in buying your Rolex, much less paying full price for it.
Good debt is when you use say 100,000 to buy real estate. If something happens that you need to get out of that debt quickly, You will be able to sell the house quite quickly and easily and even make a profit.
Personally I see all debt as bad and the real estate example is what I'd call a "lesser of two evils" debt. But in reality its the smartest kind of debt to get into.
2007-02-28 08:42:31 · answer #2 · answered by novansa7 2 · 0⤊ 0⤋
Bad debt is mean, nasty, wicked, evil debt! Or it could be seen that way. In reality, bad debt happens when you lend someone money and the person refuses to pay you back, no matter what. It coudl be because the person is unemployed, kidnapped, dead, etc. But the bottom line is that you gave someone money and you ain't getting it back in this lifetime.
2007-02-27 14:36:52 · answer #3 · answered by Anpadh 6 · 0⤊ 0⤋
high interest credit cards and pay day loans, things with high interest rates
2007-02-27 14:33:59 · answer #4 · answered by Drew S 2 · 0⤊ 0⤋