Yes.. I mentioned the “D” word. Debt. Just letting that word roll off your tongue makes you feel like you have halitosis.

Well, get that tongue scraper and Listerine out, because as surprising(and somewhat crazy) as this may sound, there is such thing good debt AND bad debt.  And you might want to keep the good debt around longer (that means instead of paying off the good debt first, pay off the bad debt first) because there are some benefits to good debt unseen by the naked eye.

What can good debt do?  Good debt can help you decrease your taxes you owe to the government, and it’s especially better for you if you’re in the higher tax brackets.  If you’re not taxed to the nines by the government, then good debt is not as fantastic as if you were in the 46% tax bracket.

What does bad debt do? Nothing. It just gives you a bad feeling and an ulcer.  It just sits there, grows interest while you tread the deep end trying to keep up with the payments.

Here are some examples of good debt.

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I was checking this post by Studenomics that talked about why Twenty Somethings are not saving money and being of the same generation Y/ 20 something category, I got to thinking…

In the past, Canadians have traditionally saved about 10% of their gross income and stashed it away in their piggy banks. Currently, the savings rate is about 0% (or with a net negative percentage). In China, it’s 30%. For some reason, we are not saving money any more!

Really, why AREN’T we 20-somethings saving money? Why IS there a disparity between the savings of Generation X and Generation Y?

I personally have a few hypotheses myself.

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