26/04/2026
đĄ Good Debt vs. Bad Debt: Know the Difference!
Not all debt is created equal. The Bangko Sentral ng Pilipinas reminds us that borrowing can either build our futureâor burden it.
â
Good Debt
⢠Used for investments that grow in value or generate income.
⢠These debts can strengthen your financial foundation when managed wisely.
â Bad Debt
⢠Used for expenses that lose value quickly or donât generate returns.
⢠These debts often come with high interest rates and can trap you in a cycle of repayment.
đ Key Takeaway: Borrow only when necessary, and make sure the debt works for you, not against you.
Treating yourself once in a while is okayâbut think twice before borrowing for non-essential expenses. đ
Use credit for meaningful goals to keep your finances on track! đ