In my Financial Essentials class, Week 2 often covers the topic of debt. It starts with a conversation about compounding interest, and how this “Eighth Wonder of the World” can either hurt you or help you through “good” or “bad” debt.
But a recent conversation with a friend has me thinking: Is there really any such thing as good debt for the typical family?
I’d like to discuss two forms of debt which we gladly justify--or label as “good debt”--and for a moment take a contrarian view as to why these commonly accepted forms of good debt may not be so great.