The less debt you have the better. That being said, you will hear people talking about good debt versus bad debt.

Put simply:

Good debt

• Used to purchase an asset, like a house or investments.
• Ideally these are appreciating assets, something with real value that you could sell if you needed to clear the debt.
• So while a car loan has an asset attached to it, it is depreciating, so something to be cautious about. Continue reading →