There’s good debt and bad debt
Think of good debt as the kind of debt that’s secured against a property. For example, your mortgage or a home equity line of credit (HELOC). These are considered “good” loans because they are secured against your property and therefore have lower interest rates – in fact, historically low at the moment!
Think of bad debt as the money you have owing on credit cards and personal lines of credit. This is a bad form of debt because interest rates on these types of loans are far higher since they are unsecured (in other words, not secured by a piece of property).