Explore the fine line between good debt and bad debt, and learn how to manage your borrowing wisely to secure your financial future.
We hear people talk about ‘good debt’ and ‘bad debt’, but debt can change sides. A loan that made sense at the start can become a problem when your income drops, prices rise or interest rates go up.
Good debt: what it means
Good debt is money you borrow to build something for the future, like a home, a qualification or a business. The idea is that what you get from the loan should put you in a better position later.
Common examples:
