# Good Debt vs Bad Debt

*Borrowing & Credit — Finicade finance glossary*

Good debt is cheap and buys something that grows or earns — a mortgage, student loans, a business loan. Bad debt is expensive and buys things that lose value — credit-card balances on everyday spending. Same word, opposite effect on your future.

**Also known as:** good vs bad debt

**Related terms:** [Debt](https://finicade.com/glossary/debt), [Mortgage](https://finicade.com/glossary/mortgage), [Credit Card](https://finicade.com/glossary/credit-card)

**Taught in:** Money Basics — Debt: Interest Working Against You

Source: https://finicade.com/glossary/good-debt-vs-bad-debt