With political commentators discussing whether the latest Federal Budget has put Australia into too much debt (well leave that debate to the experts), some everyday Aussies may be concerned about the debts in their own household budgets, and what they could mean for their financial futures.
Similar questions were asked back in 2017, when current prime minister Scott Morrison was still just the federal treasurer. At the time, he sorted the governments deficits into good debt and bad debt.
What is Good Debt and Bad Debt?
According to ScoMo, good debt is borrowing to buy something that may deliver future value or benefits, and bad debt is borrowing to make one-off purchases that may not give you back much in return.
For example, home loans…
Read the full article at: https://www.ratecity.com.au/credit-score/articles/good-debts-bad-debts-affect-credit-score
