Good debts and bad debts

I have just read a good piece of writing by Pakdi. You can read it here.

Of course, there always been a good debts, and a bad debts. To simplify this:-

Good Debts
Good debt is a debt that can give you higher return that the amount of the debts that you make. This include the amount of money that you borrow plus the interest that you must pay in order to borrow the money from the banks. For example, a property or a house that you buy will increase in value in certain period of years and the value in 10 years time is higher than amount of money that you borrow from the bank. But this will depends on the market and the location of the property.

Bad Debts
Bad debt is an opposite of the good debt. It is a debt that will give you a lower return and the thing that you purchase will decrease in value. A very good example is mass production cars. After you buy the car, the car price will drop and it will be keep dropping year by year. Other example is like electrical appliances that you buy by using the plastic card, furniture and much-much more.

Thats why people are getting into deep debts because the did not manage the debts well enough and they did not know the types of debts. Mainly because of ignorance and lack of financial knowledge make them poor and getting poorer. And they blame the plastic card for all the sort of financial situation that they are in. So increase you financial knowledge and don't be like them.