Anyone pls do answer these asapwill mark brainliest 1. You want to buy a car. You could take the bus (it’s cheaper) but you really want a car. You take out a loan to buy it. Is this good debt, bad debt or ugly debt? Why?

2. You want to buy a car so you can get a job as a delivery person. You take out a loan to buy it. Is this good debt, bad debt or ugly debt? Why?

3. You love shoes. You open a store credit card and buy $700 worth of new shoes. Then you realise you can’t make the minimum payments, they’re higher than you expected. Is this good debt, bad debt or ugly debt? Why?

4. You want a pony. You have always wanted a pony. You can buy a pony for $1000. You don’t have $1000 right now, but you can get a credit card to buy the pony with. Is this good debt, bad debt, or ugly debt? Why?

5. Ok, you want a pony, and it will cost you $1000. You don’t have $1000 right now, but you do have a business plan to giving pony rides to the kids in the neighbourhood, and your bank might lend you $1000 to start a business if you have a good plan. Is this a good debt, bad debt or ugly debt? Why?

1.) Ugly debt, taking out a loan to buy something that's deprecating to your funds, responsibilities of being a car owner it can snowball you into a financial hole.

2.)Good debt, taking out a loan as an investment in the hopes of creating wealth with the job.

3.) Ugly debt, already in debt, you have to deprecate yourself financially by making shoe, lol, payments over time which reaps you nothing but more debt.

4.)Bad debt, something you buy that does nothing but hurt your funds. The pony alone is a horrible purchase.

5.) Good debt, investing in something that will create wealth in the future. Think student loan debt.

Explanation:

These "official" defintions will help you in the future recognizing these financial burdens.  In my opinion, all debt is bad debt.  

Debt is tricky. Though it’s an extremely useful financial tool many people depend on, it can be very dangerous when used improperly or carelessly. Here’s a quick rundown of the different roles debt can take on:

The (Sort Of) Good

Many responsible people use debt to acquire big-ticket items they need today, but that cost too much to pay for all at once. The vast majority of the population couldn’t afford a college education, vehicle, or home without financing them.

The Bad

Credit cards or other forms of borrowing can make it easy to forget that you’re playing with real money. It can cause people to buy things they don’t really need or make purchases they can’t really afford. Don’t take on debt without giving it some serious thought first.

The Ugly

Debt has a way of spiraling out of control—fast. Before you know it, your payments can total more than you can comfortably pay and there’s no end in sight. Think a payday loan might fix the problem? Think again. These “short-term,” high-rate loans are the very definition of ugly. Avoid them at all costs.

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