Why Is Credit Card Debt Considered 'Bad' Debt?

Why Is Credit Card Debt Considered 'Bad' Debt?

There are different ways you can go about borrowing money. You can take out a loan for a specific purpose, like an auto loan to buy a car, or you can take out a personal loan, which lets you borrow money for any reason. You can also borrow money via your credit cards -- namely, by racking up a balance and then paying it off as you're able to.