In this episode of the Cash Course Podcast, Brett and Derrick discuss the concepts of good debt and bad debt. They define bad debt as debt that is expensive to use and hold, with high interest rates and no potential for income generation. Examples of bad debt include high-interest credit card debt, car loans, and buy-now-pay-later services. On the other hand, good debt is debt that can be used to purchase appreciating assets and has the potential to generate income. Examples of good debt include mortgages and student loans used for education or certifications that increase earning potential. In this episode, the hosts discuss the concepts of good debt and bad debt, as well as the strategy of house hacking. They explain that good debt is used to buy appreciating assets that generate income, while bad debt is associated with consumerism and frivolous spending. They emphasize the importance of careful consideration and risk assessment when taking on debt for business endeavors. The hosts also share personal stories and examples of how house hacking can be a valuable strategy for minimizing housing expenses and saving money.Takeaways

Chapters00:00Introduction and Mission of the Cash Course Podcast02:25Bad Debt: Definition and Examples08:02More Examples of Bad Debt12:37Good Debt: Definition and Examples21:06Student Loans as Good Debt23:17Other Examples of Good Debt24:24Good Debt vs. Bad Debt31:09House Hacking