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Good and Bad DebtWhen is $20,000 in debt good and bad? The answer requires an understanding of good and bad debt. Debt that is devoted to the payment of something tangible or necessary is considered good debt. Debt that is devoted to something frivolous is not. Put in practical terms, $20,000 in debt accrued for a new car is good debt. $20,000 on your Visa card is not.
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