“All Debt Is Bad, Right?”
Not quite.
Some debts help you build wealth or increase your future income. Others? They slowly trap you in a cycle of EMIs and stress.
Let’s break it down simply:
Not all debt is evil—but not all debt is useful either.
Here’s how to tell the difference—with help from Vizzve Finance.
✅ What Is Good Debt?
Good debt is money borrowed for something that will grow in value or generate income.
Examples of Good Debt:
🏠 Home Loans – Property usually appreciates over time
📚 Education Loans – Increases earning potential
🚌 Business Loans – Can help you generate profit
🛠️ Skill-building Courses – Improves employability
Key Rule: Good debt is an investment, not an expense.
🚫 What Is Bad Debt?
Bad debt is money borrowed for things that lose value quickly or offer no return.
Examples of Bad Debt:
💳 Credit Card EMIs for gadgets
🚗 Car loans (for luxury or frequent upgrades)
🛍️ Buy Now, Pay Later (BNPL) for shopping
🎁 Personal loans for weddings or vacations
Key Rule: Bad debt funds your lifestyle, not your future.
Quick Comparison Table
| Feature | Good Debt | Bad Debt |
|---|---|---|
| Builds future value? | ✅ Yes | ❌ No |
| Interest rate | Usually lower | Usually higher |
| Tax benefits | Often available | Rarely applicable |
| Example | Home/Education Loan | BNPL for Clothes/Gadgets |
| Long-term benefit | Increases wealth | Increases liability |
How Vizzve Helps You Manage Both
📈 Track All EMIs in One Place
Vizzve gives you a complete picture of your debt—good and bad.
🚨 Smart Alerts
Get repayment reminders so you avoid late fees and credit damage.
📉 Debt-to-Income Analysis
See if your monthly debt load is healthy or holding you back.
🧠 Actionable Tips
Get custom insights on which debts to pay off first—and how fast.
FAQs
Q1: Can bad debt ever be okay?
Sometimes—if it’s controlled. But don’t use it for recurring or emotional purchases.
Q2: How do I get out of bad debt faster?
Pay more than the minimum
Use the debt avalanche or snowball method
Consolidate high-interest debt
Use Vizzve to automate and track progress
Q3: What’s the ideal debt-to-income ratio?
Try to keep your monthly debt payments below 30% of your income.
🔐 Final Word
“Good debt builds your future.
Bad debt steals from it.”
The key is to borrow mindfully and manage smartly.
Let Vizzve Finance help you track your loans, understand your risk, and take control—before the debt controls you.
Published on : 8th July
Published by : SMITA
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RBI-Registered Loan Partner | 10 Lakh+ Customers | ₹600 Cr+ Disbursed.