bad debt is where they cannot be recognize as a revenue while good debt can be recognize by the creditor.
If you don't know by now my suggestion is not to go into debt.If you would read this forum you could learn a lot.
While your suggestion may be to not go into debt, there are debts that are "good" debt. When you can borrow money and make more on it than you pay for it, that's good debt. It's called using other people's money to build wealth. Most wealthy people and successful business people have learned how to do this. You won't get rich paying cash for everything.
Bad debt hangs around on the street corner, smoking and drinking beer. It beats up the good debt and steals its lunch money, then forces the good debt to do its homework. After years of minor skirmishes with the law, bad debt finally gets a felony prison sentence for stealing a car. Good debt always turns in its assignments on time, gets mostly A's and a few B's, and goes to church every Sunday.
