Bad debt is borrowing that makes it harder to reach your financial goals, often because the purchase quickly loses value or the loan carries high borrowing costs. Common examples include revolving credit card balances, payday and title loans, and borrowing to buy luxury goods that rapidly depreciate. Auto loans can fall into either category. Financing reliable transportation needed for work may be worthwhile, but borrowing to buy more vehicle than you need can work against your long-term financial plans.
verifiedCite
While every effort has been made to follow citation style rules, there may be some discrepancies.
Please refer to the appropriate style manual or other sources if you have any questions.
Select Citation Style