This is a subscriber-only article. Join Entrepreneur+ today for access

Learn More

Already have an account?

Sign in
Entrepreneur Plus - Short White
For Subscribers

The Difference Between Good and Bad Debt Sometimes debt can give you a financial edge -- but you need to use it wisely.

By J.D. Roth

Opinions expressed by Entrepreneur contributors are their own.

Put it on plastic

It's something of an entrepreneurial cliché, but you can always use credit cards to fund your business. Just save them for short-term needs--when you need a few weeks, not months, of float on your money to obtain an immediate return. This can be for items such as a booth at a trade show, a last-minute sales trip to land new business or an emergency vendor payment.

I don't like debt. For nearly a decade, I've written about personal finances, both my own and those of others. And too many times I've seen how debt can act like a cancer, draining life from healthy bank accounts.

That said, debt can sometimes be used for good. It's OK to take on reasonable debt to pay for the few things that are likely to hold or even increase their value: an affordable mortgage (the key word being affordable), student loans or financing for a business.

Editor's Pick

Related Topics

Business News

Bank Accidentally Deposits $86 Million Into Woman's Account, Freezes Her Assets

The incident occurred at the Malaysian bank, Maybank.

Business News

Google Accidentally Sent This Man a $250,000 Payment

Security engineer Sam Curry was in for quite the treat when he checked his bank account around a few weeks ago.


Why Every Entrepreneur Should Consider Starting a Podcast

This article sheds light on the power of podcasts, particularly for entrepreneurs, outlining steps to launch a successful podcast.

Science & Technology

Balancing AI Innovation with Ethical Oversight

It is clear that regulatory practices are a must — there is no exception.

Business News

She Lost Her Job as a Disinformation Scholar at Harvard — and Claims Facebook May Have Had Something to Do With It

Dr. Joan Donovan alleges Harvard stopped her research after receiving donations from the Chan Zuckerberg Initiative. Harvard denies the claim.