Control your debt - MoneySense

Control your debt

Make sure you’re borrowing money for the right reasons


It’s likely you won’t be able to avoid debt entirely, so the trick is to manage it wisely.

Bad debt is when you borrow to buy consumable items. If you’re borrowing to buy clothing, vacations, cars, electronics—anything that starts losing value as soon as you buy it—you’re taking on bad debt.

On the other hand, good debt helps you build your net worth. It’s used to buy investments that will go up in value like a home, a business, stocks and even your education.

Make sure your net worth keeps rising and you’re not letting your debt go out of hand.