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The Difference between Good and Bad Debt

7 March 2019

Most of us get into debt at some point in our lives. For you, this may happen when you’re buying a big-ticket item you can’t afford to pay for in cash, such as a house or car.

Alternatively, you may be using your credit card on a daily basis to pay for food and other consumables.

While it’s never wise to get into debt if you can’t afford the repayments, certain types of debt can actually be financially beneficial in the long run. Next time you’re applying for a loan or using a credit facility, it’s worthwhile knowing whether you’re getting yourself into good debt or bad debt.

Our infographic explains the difference between good debt and bad debt.

Seek Expert Advice

Knowing the difference between good debt and bad debt is the first step in smart financial planning. However, before making any debt-related decisions, it’s best to speak to your financial adviser.

Sanlam Life Insurance is a licensed financial service provider.
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