Good Debt, Bad Debt: Knowing the Difference Can Save Your Financial Life

by Jon Hanson

Debt is like cholesterol, says author and lecturer Jon Hanson: Some kinds are good and some are bad. Too much bad debt can wreck your financial health, but so can too little good debt. The problem is that many people never learn the difference. Hanson himself barely survived a “near debt experience” a few years ago.

In Good Debt, Bad Debt, Hanson explains how good debt can help readers achieve their dreams, such as buying a house, a car, or a college education. But he’s also tough about diagnosing the symptoms of bad debt. If you’ve ever gotten into trouble with your credit cards, or leased a car that’s way more expensive than you can really afford, or bought a house with only 5 percent down, it’s time for a reality check.

Hanson has been researching this topic relentlessly since pulling himself out of the hole he dug with bad debt. His book blends personal stories, humor, and even twenty original cartoons, making it more fun to read than the typical personal finance tome. It covers topics like income/wealth confusion, emotional spending, and marriage issues—as well as nuts-and-bolts chapters on car buying, home buying, retirement, and more.

Good Debt, Bad Debt is an entertaining and inspirational guide to improving your life so that bad debt can’t rob you of your joy. In the tradition of Rich Dad, Poor Dad, it shares the secrets that only a minority of lucky people already know.

Genres: Finance, Economics, Nonfiction

288 pages, Hardcover

First published December 29, 2004

Reviews

[Desiree Kern · Rating 4 out of 5]

First off, if you're going to buy the book, make sure it's the most recent copy. When I was given the book, I was also given the new chapters separately. Hanson does a good job of describing how to get out of debt in terms that everyone can understand (that is to say, John Woo Kung-fu style debt management).

[Joey D · Rating 4 out of 5]

a quick read, if you need a book it's worth it

[Jose Gonzalez · Rating 4 out of 5]

Solid as a general knowledge book 🌝

[Caleb Falbo · Rating 2 out of 5]

Very basic to an extreme. Unless you're at a childlike level of financial literacy, you likely will not learn anything from this book. Principles are sound though.

[Soha Nagy]

And i paid money for this 🙄 useless

[Carrie · Rating 2 out of 5]

This book encourages you to develop spending habits that compliment your income level and savings/retirement goals. It emphasizes budgeting, self-discipline, and delayed gratification. Although I strongly agree with the overall message of the book, I only gave it 2 stars because it is poorly written, repetitious, and the actual financial advice is not stellar.

[Sam · Rating 3 out of 5]

I wasn't sure that I was going to get through this book. The ideas are sound. Despite the title, he doesn't talk much about good debt. Most debt, by his definition, is bad, unless it pays for itself. However, his writing style is not much of a narrative. It consists of a lot of one-liners strung together. I think I started to skim the last few chapters, so it became less noticeable.

[Travis · Rating 3 out of 5]

Some good information, but also a good amount of things that sound very biased or too oversimplified to actually help.