--- title: Good debt vs. bad debt description: Learn how to differentiate between good debt and bad debt. image: https://blog.accesscu.ca/hubfs/Good%20debt%20vs%20bad%20debt.jpg --- #003B49 [![AccessCU\_Horizontal\_Colour\_pws-1](https://blog.accesscu.ca/hs-fs/hubfs/AccessCU_Horizontal_Colour_pws-1.png?width=199&height=50&name=AccessCU_Horizontal_Colour_pws-1.png "AccessCU_Horizontal_Colour_pws-1")](https://www.accesscu.ca/) Open main menu Close main menu [Finances](https://blog.accesscu.ca/tag/finances) # Good debt vs. bad debt ![Access Credit Union](https://blog.accesscu.ca/hs-fs/hubfs/Access_LogoMark.jpg?width=45&name=Access_LogoMark.jpg) [Access Credit Union](https://blog.accesscu.ca/author/access-credit-union) [Share this blog post on Twitter](https://twitter.com/intent/tweet?text=I+found+this+interesting+blog+post&url=https://blog.accesscu.ca/good-debt-vs.-bad-debt) [Share this blog post on Facebook](http://www.facebook.com/share.php?u=https://blog.accesscu.ca/good-debt-vs.-bad-debt) [Share this blog post on LinkedIn](http://www.linkedin.com/shareArticle?mini=true&url=https://blog.accesscu.ca/good-debt-vs.-bad-debt) ![](https://blog.accesscu.ca/hubfs/Good%20debt%20vs%20bad%20debt.jpg) In the world of finance, you may have heard people talk about good debt and bad debt. Many people see all debt as the same, and it can be hard for them to make the right decisions when trying to choose which to pay off first, or when presented with even more credit.  The good news? It’s easy to differentiate between good debt and bad debt. # Good Debt Good debt is usually taken on as an investment into your future. Think of good debt as a means to an end in helping you get to the next level. If it helps you increase your income, build equity, or improve your quality of life in a significant way, then that would be considered good debt. Examples: - Student loans - Business loans - Mortgage # Bad Debt Bad debt is typically taken on in ways that don’t directly improve your life or situation. Most bad debt comes with high interest rates attached to it, and while some of these examples can be argued as helpful in the moment, over time they end up costing you more money than saving and living responsibly.  Examples: - High interest credit cards - Payday loans - Bad credit / No Credit Car Loans If you're worried about your debt load, you might consider a loan from Access Credit Union to consolidate your payments into a single, manageable one. [Talk to one of our experts](https://www.accesscu.ca/en/meet-now) to see what is possible. ## Related Articles [![](https://blog.accesscu.ca/hubfs/Debt%20Consolidation.jpg)](https://blog.accesscu.ca/how-consolidation-can-help-you-get-out-of-debt) [Financial Literacy](https://blog.accesscu.ca/tag/financial-literacy) [Lending](https://blog.accesscu.ca/tag/lending) [Spending](https://blog.accesscu.ca/tag/spending) ### [How consolidation can help you get out of debt](https://blog.accesscu.ca/how-consolidation-can-help-you-get-out-of-debt) ### You don't have to deal with debt on your own. We're here to help you manage it, provide solutions, and get you back on track. ![Access Credit Union](https://blog.accesscu.ca/hs-fs/hubfs/Access_LogoMark.jpg?width=45&name=Access_LogoMark.jpg) [Access Credit Union](https://blog.accesscu.ca/author/access-credit-union) [Read More](https://blog.accesscu.ca/how-consolidation-can-help-you-get-out-of-debt) [![](https://blog.accesscu.ca/hubfs/Pay%20off%20debt.jpg)](https://blog.accesscu.ca/pay-off-debt-or-start-saving-what-should-you-do-first) [Saving](https://blog.accesscu.ca/tag/saving) [Tips & Advice](https://blog.accesscu.ca/tag/tips-advice) [Finances](https://blog.accesscu.ca/tag/finances) ### [Pay Off Debt or Start Saving? What Should You Do First?](https://blog.accesscu.ca/pay-off-debt-or-start-saving-what-should-you-do-first) What’s more important? Paying off debt or saving money? ![Access Credit Union](https://blog.accesscu.ca/hs-fs/hubfs/Access_LogoMark.jpg?width=45&name=Access_LogoMark.jpg) [Access Credit Union](https://blog.accesscu.ca/author/access-credit-union) [Read More](https://blog.accesscu.ca/pay-off-debt-or-start-saving-what-should-you-do-first) #### Connect with Access Credit Union Follow Access Credit Union on social media for financial advice and news from our member community.  [![facebookwhite\_64x64](https://blog.accesscu.ca/hs-fs/hubfs/facebookwhite_64x64.png?width=45&height=45&name=facebookwhite_64x64.png)](https://www.facebook.com/AccessCreditUnion) [![linkedin](https://blog.accesscu.ca/hs-fs/hubfs/linkedin-6-64.png?width=45&name=linkedin-6-64.png)](https://www.linkedin.com/company/access-credit-union)[![instagramwhite\_64x64](https://blog.accesscu.ca/hs-fs/hubfs/instagramwhite_64x64.png?width=45&height=45&name=instagramwhite_64x64.png)](https://www.instagram.com/accesscreditunion/)