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Good Debt or Bad Debt?
by Staff
The mere mention of the word debt is enough to send some consumers running. But, did you know that there is actually such a thing as good debt? See if you have a good grasp on the difference in our good debt vs. bad debt quiz.

Rebecca uses a credit card for most of her purchases, but pays off the full balance each month.

  • good debt
  • bad debt
  • most likely good debt
  • most likely bad debt

Ted, a college student, carries a balance on his credit card and only pays the minimum amount due each month.

  • good debt
  • bad debt
  • most likely good debt
  • most likely bad debt

Sarah has $20 in her purse, but she chooses to use a credit card to buy her lunch burrito.

  • good debt
  • bad debt
  • most likely good debt
  • most likely bad debt

After experiencing a medical emergency, Chuck paid his hospital bill with a credit card.

  • good debt
  • bad debt
  • most likely good debt
  • most likely bad debt

Susan needed some cash, so she took out a cash advance on her credit card.

  • good debt
  • bad debt
  • most likely good debt
  • most likely bad debt

Megan increased her monthly payment by $1,000 to own a home instead of renting one.

  • good debt
  • bad debt
  • most likely good debt
  • most likely bad debt

Jerry is refinancing his home mortgage.

  • good debt
  • bad debt
  • most likely good debt
  • most likely bad debt

Julia bought a home by putting the minimum down and can barely afford her monthly payment.

  • good debt
  • bad debt
  • most likely good debt
  • most likely bad debt

Tom took out a home equity loan for a home improvement project.

  • good debt
  • bad debt
  • most likely good debt
  • most likely bad debt

Taylor received a bonus at work and invested it in a high-return stock market account.

  • good debt
  • bad debt
  • most likely good debt
  • most likely bad debt

Denis cashed in his 401K to invest in a high-risk stock.

  • good debt
  • bad debt
  • most likely good debt
  • most likely bad debt

George decided to buy a $60,000 car, although he can only afford a $20,000 car.

  • good debt
  • bad debt
  • most likely good debt
  • most likely bad debt

Jeff just bought a jet ski because there was a zero down promotion sale.

  • good debt
  • bad debt
  • most likely good debt
  • most likely bad debt

Sally is trading in her SUV for a used, more fuel-efficient sedan.

  • good debt
  • bad debt
  • most likely good debt
  • most likely bad debt

Sue and Henry need to take out a loan to afford their exotic honeymoon.

  • good debt
  • bad debt
  • most likely good debt
  • most likely bad debt

Mark and Jan just took out a loan to put their son in a private vocational school.

  • good debt
  • bad debt
  • most likely good debt
  • most likely bad debt

Ryan doesn't have enough cash to make it to pay day, so he decides to take out a payday loan.

  • good debt
  • bad debt
  • most likely good debt
  • most likely bad debt

Robert plans to propose to Rachel next month, so he takes out a loan to buy an engagement ring.

  • good debt
  • bad debt
  • most likely good debt
  • most likely bad debt

Ken applied for a student loan so he can go attend college after high school.

  • good debt
  • bad debt
  • most likely good debt
  • most likely bad debt

Although she's not sure what type of work she wants to do, Laura is passionate about reading and takes out a student loan to go back to school for her doctorate in literature.

  • good debt
  • bad debt
  • most likely good debt
  • most likely bad debt