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Good Debt, Bad Debt
The trick
Debt is borrowed money you repay — usually with interest (the cost of borrowing). Debt isn't automatically evil, but it has two faces. Lower-cost, purposeful debt — like a home loan or an education loan — can help you build something of lasting value at a manageable interest rate. High-cost debt — credit-card balances, "buy now pay later," and payday-style loans — often carries very high interest and can trap you. The rule of thumb: borrowing to buy something that grows in value or earning power can make sense; borrowing for everyday wants you can't afford usually doesn't. Always know the interest rate before you borrow.
Worked examples
💰 Money task: List any debts you have with their interest rates, highest to lowest. The ones at the top are the most expensive — and usually the ones to clear first.
Practice
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