What's the difference between good debt and bad debt?

The I only good debt is the when you are the lender.

>>1577956
If I borrow money at 1%, then I invest that money and make 2%, that's good debt.

If it's an account receivable, it's good debt.

>>1577978
What does that term mean anyway?

>>1577982
>Investopedia
>Google

>>1577983
How did you get those green words?

>>1577997
Use the ">" character

>>1578001
Thanks ∆

>>1578004
alt-j, macfag?

>>1577982
An account is a generic term for a lane of money. If it's receivable, the account holder owes you money. If it's payable (like an account with an electric company), you owe them.

>>1577982
a bad debt is something you're doubtful to recover (i.e., the borrower is facing insolvency)

if you have no reason to believe the debt won't be repaid, it's a good debt and is listed under accounts receivable.

>>1577956
As long as the debt is allocated right, then the debt is good, up to the point where it becomes inflationary. In a macro sense government debt is an asset to it citizens.

>>1577956
If the return on the assets you acquire with the debt exceeds the interest you pay on the debt, it is good debt. If not, it is bad debt.

Debt is only acceptable if it leads to future gains.
-Use it if the opportunity cost of using equity is higher than the interest on debt.
-Use it as leverage if the ROI is bigger than the interest on debt.
-Use it as bridge financing if you don't have equity available right now but don't want to pass up an opportunity.

>>1578015
No, I use a computer.

>>1577972
>this week on things that have never happened