Good debt vs bad debt
When borrowing builds wealth, and when it quietly destroys it.
In the app: 2 lessons · 1 quick check
Key points
1. Bad debt
- Borrowing to pay for daily expenses or celebrations.
- Buy-now-pay-later that you can't clear quickly.
- Loans for things that lose value, like phones and cars.
- Borrowing to gamble or chase quick profits.
2. Good debt
- Good debt helps you buy something that grows in value or brings in more money than the loan costs — for example, stock for your shop that you are sure will sell at a profit.
Before you borrow, ask: will this bring in more than it costs me, and can I repay even if business is slow?
The full lesson is in the Kopkad app
Worked examples in naira, quick checks to test yourself, and the step-by-step guide to doing it, free with your account.
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Full lesson + tools in the Kopkad app
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Free to join. Find the lessons under Learn → Financial Literacy at app.kopkad.ng and in the Android app.