Bad Debts

What is Bad Debt?

There are two ways to look at bad debt and that is from a business aspect and from a personal finance
aspect.  Since I'm only giving a tutorial to help you with your personal finances I will only discuss
bad debt from a personal prospective.

Bad debt is when you borrow money for something 
that will never gain any value.

Examples of Bad Debt


  • Pay Day Loans

  • Auto Loans

  • Furniture Loan

Try to stay away from those kinds of debt.  Bad debt 
has no place in your budget.  So try to eliminate those 
kinds of debts.


What can bad debt do to your financial life?

  • Reduces your net worth

  • Lower your credit score

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Next Page - Understanding When Debt is Good































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                       Hi, I'm Abbie.
                       Your financial 
                       education tutor.

                    Welcome!