September 5, 2017

Do you have good debt or bad debt?

Language is often used to manipulate our thoughts and feelings.  Some terms, such as credit and debt, are common in everyday parlance but we take them to have vastly divergent interpretations.  Everyone wants to have credit but no one wants to have debt.

Imagine someone trying to sign you up for a debt card – you might even have an aversion to filling out the application form.  But a credit card sounds much more appealing.  After all, it’s everywhere you want to be.

Even with debt many people try to distinguish between good debt and bad debt.  Good debt presumably, is debt that is current whereas bad debt is debt that is in arrears of payment.  The same might hold of the term credit, good credit is when you are able to maintain regular payments while bad credit is when you are in arrears.

Seems fairly simple on the face of it but underlying all debt is the fact that you owe your future income to a creditor.  Wouldn’t you rather live without debts?  Wouldn’t life be simpler and better if you could live within your means and if your means were sufficient for you to maintain a reasonable lifestyle?