Debt is a good when ________.

Question

Quizplus · Accepted Answer

Debt can be beneficial when it allows us to acquire an asset earlier than we would be able to afford otherwise, while still being able to pay it off over time. This can be especially true if the asset, such as a home or education, has potential to appreciate in value over time. Option A is not always true, as high levels of debt can actually inhibit positive cash flow in the long term. Option C is not always beneficial, as some low-rate debt (such as credit card debt) can still be very expensive due to fees or penalties. Option D is not necessarily the best choice, as some debt can be strategically used to achieve financial goals.

Debt Is a Good When ________