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Why is buying a car considered bad debt

Why is buying a car considered bad debt-example-1
User Eliel
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Answer:

Buying a car is generally considered bad debt because it is a depreciating asset, meaning its value decreases over time, whereas good debt is used to purchase assets that increase in value, such as real estate. In addition, cars often require a significant financial investment with monthly payments, insurance, and maintenance costs. This can increase an individual's debt load and decrease their overall financial stability.

Step-by-step explanation:

User Sjakubowski
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