Comments on: Is There Such a Thing as Good Debt?

By: New Laws Rock the Debt Settlement World

New Laws Rock the Debt Settlement World — Wed, 18 Aug 2010 09:31:56 +0000

[...] has poured into the airwaves from debt companies that promise an easy fix for very complicated debt problems. Complaints about these companies to the BBB have grown and many consumers have gotten into serious [...]

By: SFaith

SFaith — Fri, 22 Jan 2010 20:47:28 +0000

The Bible does not condemn debt, it just advises people to avoid it. It also admonishes those who have the means to lend to their brothers in need. I agree with you that the words good and debt just don’t quite go together.
SFaith´s last blog ..Why Write A Business Plan?

By: Baby Boomers U. S. (The Blog) » Blog Archive » Baby Boomers Blog Carnival Twenty-third Edition

Wed, 20 Jan 2010 11:21:48 +0000

[...] Plemon presents Is There Such a Thing as Good Debt? posted at Personal Finance By The Book, saying, “Joe examines different types of debt to [...]

By: Money Hacks Carnival #100! | Ultimate Money Blog- Save Green and Live Green!

Wed, 20 Jan 2010 09:06:50 +0000

[...] Plemon presents Is There Such a Thing as Good Debt? posted at Personal Finance By The [...]

By: Best of Money Carnival: Edition #34 — the centsible life

Best of Money Carnival: Edition #34 — the centsible life — Mon, 18 Jan 2010 11:06:02 +0000

[...] Is There Such a Thing as Good Debt? by Personal Finance By The Book. Joe examines different types of debt to determine which, if any, can be considered “good”. [...]

By: Booties, Chickens, and Link Love Oh My! | Squawkfox

Booties, Chickens, and Link Love Oh My! | Squawkfox — Sun, 17 Jan 2010 22:25:24 +0000

[...] Is there such thing as good debt? | Personal Finance By The Book [...]

By: joeplemon

joeplemon — Thu, 14 Jan 2010 17:00:21 +0000

Cedric,
I am familiar with Larry Burkett and the statement that the Bible never says anything positive about debt, but I, like you, am not crystal clear on Larry’s exact quote. I have also heard Dave Ramsey say that in the Bible God never uses debt to accomplish His purposes. So…you make a great point: if it is true that the Bible never characterizes debt as good, who am I to do so?

I think you would guess from the tone of the post that I really struggle with ever calling any debt “good”. Good debt is still an oxymoron to me.

However, even if the Bible never says anything good about debt, I am not sure that the Bible explicitly condemns borrowing to buy a house, while using proper safeguards. I am certainly not looking for loopholes to justify debt, just clarity.

How about a new phrase: GREAT DEBT: Defined as former debt, now all paid off. With that definition, we could agree that there is such a thing as “great debt”.

Thanks for reading and for your encouraging words. Stop by often!

By: Cedric D'Hue

Cedric D'Hue — Thu, 14 Jan 2010 14:17:20 +0000

Hi Joe,

I am very encouraged to see articles dealing with this issue. Larry Burkett is generally acredited with basically saying there are no instances in the Bible where debt is viewed in a positive manner. I don’t have the exact quote but I’m fairly certain this is the general gist. Based on his insight on the Bible, I never characterize debt as good. Thoughts?

Thank you for bringing up these important issues and keep up the good work.

Cedric

By: joeplemon

joeplemon — Wed, 13 Jan 2010 23:49:54 +0000

@Joe Taxpayer,
I went into the writing of this post knowing that there is no clear answer to my title question. My goal was to get others to ask the same question, so I appreciate your thoughts.

I actually had to write the post before I grudgingly conceded that house debt can, under ideal circumstances, be considered “desirable”. But my opening sentence still holds true: “good debt” still sounds like an oxymoron.

By: JoeTaxpayer

JoeTaxpayer — Wed, 13 Jan 2010 23:30:46 +0000

Debt is such an emotionally charged issue. And while I have thoughts, I won’t have an answer. What if kids all took on internships so their college was paid for as they went? 6 years in school but a decent work schedule in a real job (no offense to the burger flippers, I flipped on weekends while in school).
A house. When homes are rising at a normal pace, matching inflation, it’s easy to feel that the price keeps getting ahead of your ability to afford it, and wanting to just get in. There’s certainly a risk of overextending, which is an issue. There’s a crossover where the cost of rent is higher than the monthly mortgage, and combined with the desire to own, will push people to buy.
I’d never even use the word ‘good’ to describe debt, I’d just look at the difference between debt one can afford and that one can’t.