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At its most basic definition, debt is simply an amount of money borrowed by one party from another.Under this definition, debt sounds neither good nor bad.

It's the way they pay for just about everything from big-ticket items like homes and cars to daily purchases like gasoline and chewing gum.In other words, "if it won't go up in value or generate income, you shouldn't go into debt to buy it." Some particularly notable items related to bad debt include: Vehicles are expensive. While you may need a vehicle to get yourself to work and to run the errands that make up everyday life, paying interest on a car purchase is simply a waste of money.By the time you leave the car lot, the vehicle is already worth less than it was when you bought it.Until just a few years ago, buying real estate seemed like a guaranteed win for most homeowners, as price appreciation over time was more the norm than not in good neighborhoods.Downward fluctuations in global real estate prices have taught many homeowners that price appreciation is not guaranteed.

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