Americans question value of ‘good debt’ like homeownership and college

The traditional distinction between ‘good debt’—investments like mortgages and student loans intended to build wealth—and ‘bad debt’ is being challenged as rising costs make these assets increasingly difficult to attain. Many Americans are expressing regret over these long-term financial commitments as the gap between debt obligations and anticipated income growth widens.

Sociological and historical perspectives suggest that access to beneficial debt is often determined by existing wealth and social positioning. While the wealthy can access affordable borrowing to build assets, those in lower income brackets often face predatory lending. Experts note that while low-income individuals may have certain financial aid protections, the middle class often lacks equivalent safeguards, bearing a disproportionate burden of debt.

Historically, attitudes toward debt have shifted from viewing it as a moral failing or a criminal offense to a tool for consumer access. However, the modern economic landscape is making traditionally wealth-building vehicles like higher education and homeownership less accessible to the general population.