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Oxymorons have always been one of my favourite figures of speech,as they efficiently convey nuance and remind us that things can be both good and bad at the same time. They also immediately remind me of season two ofMasterChefAustralia’s iconic plate-smashing (shoutout to Matt Preston).
It might sound like an oxymoron,but “good debt” is a thing in the finance world.Aresna Villanueva
You might think the stuffy and overly analytical world of finance would have no time for confusing turns of phrase,but you’d be wrong. Accountants and investors and the like love talking about “intangible assets”,“negative growth”,“sustainable cryptocurrencies” (sorry bitcoin fans),and my favourite,“good debt”.
We’re often told that debt is a bad thing,and for good reason. No one likes owing or being owed money,and being in debt can seriously affect your quality of life and financial prospects such as getting a loan or a credit card.
What’s the problem?
However,this doesn’t stop the vast majority of us from getting into debt at some point in our lives. There are about 3.2 million mortgaged properties in the country (with a total loan value of a whopping $124 billion) and 3 million of us have student debt,worth a combined $74 billion.
What you can do about it
So what makes these debts good,where other debts are bad?
Advice given in this article is general in nature and is not intended to influence readers’ decisions about investing or financial products. They should always seek their own professional advice that takes into account their own personal circumstances before making any financial decisions.