Assets vs Liabilities

Debt taken out to create cash flow (assets) is considered “good” debt. Basically you want the loan you have taken to pay itself off over time after investing the funds into something like a business or real estate.

Taking out debt to pay for personal expenses is “bad” debt. If the debt does not create income for you it’s a poor choice to finance that liability. 

Ideally, you would take out debt to by assets that then pay you enough to cover the loan payments while paying you enough to cover your lifestyle expenses. 

If you want an iPhone. Buy the apple stock and use the dividends to pay for the new phone. If you want a new home, buy apartments that have enough cash flow each month to cover your mortgage.