{"id":5190,"date":"2019-03-04T16:39:11","date_gmt":"2019-03-04T14:39:11","guid":{"rendered":"https:\/\/www.lending-express.com\/blog\/?p=5190"},"modified":"2019-07-25T16:53:19","modified_gmt":"2019-07-25T13:53:19","slug":"good-debt-versus-bad-debt","status":"publish","type":"post","link":"https:\/\/www.become.co\/blog\/good-debt-versus-bad-debt\/","title":{"rendered":"What is Good Debt and Bad Debt?"},"content":{"rendered":"\n<p><span style=\"font-weight: 400;\">Debt &#8211; the four letter word that we\u2019ve learned to dread and to avoid at all costs. The advice you may have heard growing up was to not spend money that you don\u2019t have. The truth may come as a shock to you: <\/span><a href=\"https:\/\/www.cometfi.com\/details-of-debt\" target=\"_blank\" rel=\"noopener noreferrer\"><span style=\"font-weight: 400;\">80% of Americans are currently in debt<\/span><\/a><span style=\"font-weight: 400;\">.<\/span><\/p>\n\n<p><span style=\"font-weight: 400;\">Let that sink in for a minute.<\/span><\/p>\n\n<p><span style=\"font-weight: 400;\">So if debt is so terrible, why have the vast majority of Americans decided that the reward is worth the risk? Why is debt good for a company? Keep reading to find out&#8230;<\/span><\/p>\n\n<h2><span style=\"font-weight: 400;\">What is good debt?<\/span><\/h2>\n\n<p><span style=\"font-weight: 400;\">The term \u2018debt\u2019 typically has a bad rap &#8211; but there are types of good debt as well.<\/span><\/p>\n\n<p><span style=\"font-weight: 400;\">What is good debt? Simply put, good debt is a form of investment that will either:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Add value<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Grow in value (as opposed to devalue) over time<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Or will develop into a source of income in the long-run<\/span><\/li>\n<\/ul>\n\n<p><span style=\"font-weight: 400;\">Using the word \u2018good\u2019 or \u2018bad\u2019 can be misleading. The contrast isn\u2019t used to describe a specific dollar amount. The amount of debt that your business will be comfortable handling might be way too much for another company to take on, and vice versa.<\/span><\/p>\n\n<blockquote>\n<p><span style=\"font-weight: 400;\">So how are you supposed to determine whether or not you\u2019re taking on too much debt? Short answer: your debt-to-income ratio. To calculate your debt-to-income ratio, add together all of your monthly expenses, and then divide that total by your monthly income.<\/span><\/p>\n<\/blockquote>\n\n<p><span style=\"font-weight: 400;\">It\u2019s important to keep in mind that you shouldn\u2019t aim to keep your debt under a certain dollar amount. Instead, the goal should generally be to keep your business\u2019s <\/span><a href=\"https:\/\/www.consumerfinance.gov\/ask-cfpb\/what-is-a-debt-to-income-ratio-why-is-the-43-debt-to-income-ratio-important-en-1791\/\" target=\"_blank\" rel=\"noopener noreferrer\"><span style=\"font-weight: 400;\">debt-to-income ratio at 43% or below<\/span><\/a><span style=\"font-weight: 400;\">. If your debt-to-income ratio exceeds 43%, then your chances at getting approved for a qualified mortgage decrease dramatically.<\/span><\/p>\n\n<p><span style=\"font-weight: 400;\">You asked \u201cwhat is good debt\u201d, and we answered.<\/span><\/p>\n\n<p><span style=\"font-weight: 400;\">Now that you know how to measure and assess the size of your debt, the next question to ask should be \u201cwhat are the types of good debt?\u201d<\/span><\/p>\n\n<p><span style=\"font-weight: 400;\">Broadly speaking, anything that you spend money on today which will improve your net worth or help you generate income later on down the line will qualify as \u2018good debt\u2019.<\/span><\/p>\n\n<h2><span style=\"font-weight: 400;\">Types of good debt include:<\/span><span style=\"font-weight: 400;\"><br \/><\/span><\/h2>\n\n<h3><span style=\"font-weight: 400;\">1. Student loans<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Commonly referred to as an investment in your future, student loans are one of the most popular forms of good debt in the United States.<\/span><\/p>\n\n<p><span style=\"font-weight: 400;\">In 2017, the median weekly earnings for people 25-years and older with a bachelor\u2019s degree was $1,189. Compare that to $718 weekly for those with only a high school diploma, and you\u2019ll quickly understand why student loans are considered a form of good debt.<\/span><\/p>\n\n<p><span style=\"font-weight: 400;\">Interest rates for student loans are usually lower than other types of loans, and the fact is that the highest-paying professions all require higher education. The key to handling students loans successfully is planning ahead and assessing whether the target profession is definitely what you want to pursue.<\/span><\/p>\n\n<h3><span style=\"font-weight: 400;\">2. Mortgages<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Taking out money to live in a house is one of the best forms of debt to have.<\/span><\/p>\n\n<p><span style=\"font-weight: 400;\">While it\u2019s no secret that the housing market was at the center of the 2008 Great Recession, it has since recovered. According to <\/span><a href=\"https:\/\/www.zillow.com\/home-values\/\" target=\"_blank\" rel=\"noopener noreferrer\"><span style=\"font-weight: 400;\">Zillow<\/span><\/a><span style=\"font-weight: 400;\">, today the median price of homes in the United States stands at $275,000 &#8211; that\u2019s a 7.5% increase since last year.<\/span><\/p>\n\n<p><span style=\"font-weight: 400;\">This upward trend is projected to continue over the next year, which is good news for the <\/span><a href=\"https:\/\/www.magnifymoney.com\/blog\/mortgage\/u-s-mortgage-market-statistics-2018\/\" target=\"_blank\" rel=\"noopener noreferrer\"><span style=\"font-weight: 400;\">63% of homeowners who have a mortgage<\/span><\/a><span style=\"font-weight: 400;\">.<\/span><\/p>\n\n<p><span style=\"font-weight: 400;\">A house bought today for $235,000 which increases in value by 3% every year will be worth $485,000 after 30 years (the typical term of a fixed-rate mortgage). The interest rates can be even higher, and the profit over the long term will prove the worth of this form of good debt.<\/span><\/p>\n\n<h3><span style=\"font-weight: 400;\">3. Home equity loans<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">These are loans that are basically using your home\u2019s value as a guarantee to take out either a lump sum of cash or a line of credit.<\/span><\/p>\n\n<p><span style=\"font-weight: 400;\">The interest rates are comparably low, making home equity loans one preferred way of repaying other forms of debt like credit card debt.<\/span><\/p>\n\n<p><span style=\"font-weight: 400;\">Of course, the variety of ways to use home equity loans is limitless, but many people use them to improve the value of their homes by renovating, adding solar panels, installing a swimming pool, etc.<\/span><\/p>\n\n<p><span style=\"font-weight: 400;\">Home equity loans are another form of good debt that depends on you making wise choices with your funds.<\/span><\/p>\n\n<h3>4. <a href=\"https:\/\/www.become.co\/business-loans\/\" target=\"_blank\" rel=\"noopener noreferrer\"><span style=\"font-weight: 400;\">Business loans<\/span><\/a><\/h3>\n<p><span style=\"font-weight: 400;\">It takes money to make money. Starting a business, or keeping your current business in good shape, definitely qualifies as good debt.<\/span><\/p>\n\n<p><span style=\"font-weight: 400;\">Business loans are useful if, for example&#8230; <\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">You have a great idea that you dream of actualizing<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Your existing company needs a refresher to keep the cash flow running strong<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">You want to take your existing business in a new direction<\/span><\/li>\n<\/ul>\n\n<p><span style=\"font-weight: 400;\">Business loans are often difficult to obtain from traditional lenders like banks. That\u2019s why <\/span><a href=\"https:\/\/www.become.co\/\" target=\"_blank\" rel=\"noopener noreferrer\"><span style=\"font-weight: 400;\">Become<\/span><\/a><span style=\"font-weight: 400;\"> works with businesses that are striving to reach their goals and helps guide them toward improving their funding odds and secure funding through alternative means.<\/span><\/p>\n\n<h2><span style=\"font-weight: 400;\">How to use good debt<\/span><\/h2>\n\n<p><span style=\"font-weight: 400;\">You know the types of good debt. Perhaps you\u2019re now wondering how to use good debt.<\/span><\/p>\n\n<p><span style=\"font-weight: 400;\">The process is quite simple.<\/span><\/p>\n\n<p><b>Follow these steps for how to use good debt:<\/b><\/p>\n\n<h3><span style=\"font-weight: 400;\">1. Have a clearly defined and justifiable reason<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Without a good reason for going into debt, the debt quickly shifts from \u2018good\u2019 to \u2018bad\u2019. From a business perspective, of course, the reason you make an investment should be to bring value to yourself. <\/span><\/p>\n\n<p><span style=\"font-weight: 400;\">But while you may want to go back to university to study a long-held personal interest, it may not make sense financially.<\/span><\/p>\n\n<p><span style=\"font-weight: 400;\">Good debt does not include spending money you don\u2019t have on big ticket items for the sake of looking flashy.<\/span><\/p>\n\n<h3><span style=\"font-weight: 400;\">2. Make a detailed and organized plan<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Determine how you intend on handling the debt before you take it on. If you don\u2019t know how you\u2019re going to repay the debt, you\u2019re essentially digging yourself into a hole without any practical way of pulling yourself out later on.<\/span><\/p>\n\n<p><span style=\"font-weight: 400;\">Lenders will need to know that your business plan is viable. If it isn\u2019t strong enough, it won\u2019t matter if you\u2019re asking to borrow $1,000 or $100,000 &#8212; your chances of getting approved will be small.<\/span><\/p>\n\n<p><span style=\"font-weight: 400;\">Not only will making a plan increase your funding chances, but it will also effectively help you run your business in a sensible manner.<\/span><\/p>\n\n<p><img decoding=\"async\" class=\" wp-image-5204 aligncenter\" src=\"https:\/\/www.become.co\/blog\/wp-content\/uploads\/2019\/03\/iStock-1130909895-1-300x200.jpg\" alt=\"Good debt vs bad debt\" width=\"747\" height=\"498\" srcset=\"https:\/\/www.become.co\/blog\/wp-content\/uploads\/2019\/03\/iStock-1130909895-1-300x200.jpg 300w, https:\/\/www.become.co\/blog\/wp-content\/uploads\/2019\/03\/iStock-1130909895-1-768x512.jpg 768w, https:\/\/www.become.co\/blog\/wp-content\/uploads\/2019\/03\/iStock-1130909895-1-1024x683.jpg 1024w, https:\/\/www.become.co\/blog\/wp-content\/uploads\/2019\/03\/iStock-1130909895-1-405x270.jpg 405w, https:\/\/www.become.co\/blog\/wp-content\/uploads\/2019\/03\/iStock-1130909895-1.jpg 1254w\" sizes=\"(max-width: 747px) 100vw, 747px\" \/><\/p>\n\n<h2><span style=\"font-weight: 400;\">What is bad debt?<\/span><\/h2>\n\n<p><span style=\"font-weight: 400;\">What is bad debt? Basically, anything that depreciates in value after purchasing it would be considered bad debt.<\/span><\/p>\n\n<blockquote>\n<p><span style=\"font-weight: 400;\">In discussing good debt vs bad debt, it\u2019s important to highlight that the most crucial factor is your own behavior. Whether you choose a form of debt from the \u2018good debt\u2019 column or from the \u2018bad debt\u2019 column matters less than how responsible you are with handling finances.<\/span><\/p>\n<\/blockquote>\n\n<p><span style=\"font-weight: 400;\">There are many types of bad debt &#8211; below we list off the top three types of bad debt we recommend avoiding.<\/span><\/p>\n\n<h3><span style=\"font-weight: 400;\">1. Payday loans<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">There\u2019s a reason payday loans fall under the \u2018what is bad debt\u2019 section.<\/span><\/p>\n\n<p><span style=\"font-weight: 400;\">Let\u2019s say, for example, you needed $500 to pay for a repair in your home but didn\u2019t have the funds readily available. A payday loan would front you the $500 without any collateral, but with a very high interest rate (<\/span><a href=\"https:\/\/www.consumerfinance.gov\/ask-cfpb\/what-is-a-payday-loan-en-1567\/\" target=\"_blank\" rel=\"noopener noreferrer\"><span style=\"font-weight: 400;\">often times $10-$15 for every $100 borrowed, or 300-400% annually<\/span><\/a><span style=\"font-weight: 400;\">). The repayment period is also extremely short, typically by your next payday (hence the name).<\/span><\/p>\n\n<p><span style=\"font-weight: 400;\">This is the first pitfall we mention because it is one of the most difficult forms of debt to rid yourself of once you\u2019ve gotten stuck in the vicious debt cycle that it often results in for desperate borrowers.<\/span><\/p>\n\n<p><span style=\"font-weight: 400;\">Chances are, if someone takes a loan for $500, they may face some difficulties paying back the loan with an additional $75 in interest. Payday loans frequently snowball, and before you know it you may be hundreds of dollars in debt as a result of trying to fix your finances with a payday loan.<\/span><\/p>\n\n<p><b>The big don\u2019t: <\/b><span style=\"font-weight: 400;\">Don\u2019t get sucked into payday loans by the attractiveness of quick cash with no collateral.<\/span><\/p>\n\n<h3><span style=\"font-weight: 400;\">2. Auto loans<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Automobile loans are somewhere in the gray area between types of good debt and types of bad debt.<\/span><\/p>\n\n<p><span style=\"font-weight: 400;\">On the one hand, the cold hard truth is that the vast majority of cars depreciate in value quite quickly &#8211; even <\/span><a href=\"https:\/\/www.carfax.com\/blog\/car-depreciation\" target=\"_blank\" rel=\"noopener noreferrer\"><span style=\"font-weight: 400;\">a brand new car loses more than 10% of its value within the first month<\/span><\/a><span style=\"font-weight: 400;\">.<\/span><\/p>\n\n<p><span style=\"font-weight: 400;\">So, if your plan was to buy a car and leave it in your garage for a few years with hopes that the value would increase, you\u2019ll need to reassess your strategy.<\/span><\/p>\n\n<p><span style=\"font-weight: 400;\">On the other hand, if for no other reason, you may need a car in order to travel to and from work. That in-and-of-itself contributes value and provides you with the ability to earn an income (even more so if your business depends on making deliveries and\/or attending meetings in person). Beyond that, the relatively low interest rates (<\/span><a href=\"https:\/\/www.bankrate.com\/loans\/auto-loans\/current-auto-loan-interest-rates\/\" target=\"_blank\" rel=\"noopener noreferrer\"><span style=\"font-weight: 400;\">under 5% APR in many cases<\/span><\/a><span style=\"font-weight: 400;\">) that most auto loans offer make them that much more enticing.<\/span><\/p>\n\n<p><span style=\"font-weight: 400;\">The wise route of action is to avoid buying a luxury car like a BMW and stick to the Mitsubishi that will get you from point A to point B in one piece. Or, better yet, use public transportation and avoid the costs of an automobile altogether.<\/span><\/p>\n\n<p><b>The big don\u2019t: <\/b><span style=\"font-weight: 400;\">Don\u2019t put your ego above your finances.<\/span><\/p>\n\n<h3><span style=\"font-weight: 400;\">3. Credit cards<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Perhaps the most notorious of all types of bad debt, credit card debt is definitely not something you want on your shoulders.<\/span><\/p>\n\n<p><span style=\"font-weight: 400;\">Among the 67% of Americans who have credit cards, <\/span><a href=\"https:\/\/www.valuepenguin.com\/credit-cards\/statistics\/usage-and-ownership\" target=\"_blank\" rel=\"noopener noreferrer\"><span style=\"font-weight: 400;\">the average amount owed is more than $6,000<\/span><\/a><span style=\"font-weight: 400;\">. This is concerning, but not as concerning as the interest rates offered by some credit card companies that can exceed <\/span><a href=\"https:\/\/www.bankbazaar.com\/credit-card\/interest-rates.html\" target=\"_blank\" rel=\"noopener noreferrer\"><span style=\"font-weight: 400;\">40% annually<\/span><\/a><span style=\"font-weight: 400;\">. This results in the average household paying more than <\/span><a href=\"https:\/\/www.nerdwallet.com\/blog\/average-credit-card-debt-household\/\" target=\"_blank\" rel=\"noopener noreferrer\"><span style=\"font-weight: 400;\">$1,000 in interest<\/span><\/a><span style=\"font-weight: 400;\"> on their credit cards every year.<\/span><\/p>\n\n<p><span style=\"font-weight: 400;\">The same way that payday loans can snowball out of control, leaving credit card debt unchecked will lead you towards a situation that will be very difficult to escape from. <\/span><\/p>\n\n<p><b>The big don\u2019t: <\/b><span style=\"font-weight: 400;\">Don\u2019t use credit cards to spend money that you don\u2019t have. Do use credit cards to cover regularly occurring expenses as a method of <\/span><a href=\"https:\/\/www.become.co\/blog\/raise-credit-with-credit-score\/\" target=\"_blank\" rel=\"noopener noreferrer\"><span style=\"font-weight: 400;\">building credit<\/span><\/a><span style=\"font-weight: 400;\">.<\/span><\/p>\n\n<h2><span style=\"font-weight: 400;\">Debt vs equity<\/span><\/h2>\n\n<p><span style=\"font-weight: 400;\">First, what is the difference between debt and equity?<\/span><\/p>\n\n<h3><span style=\"font-weight: 400;\">Equity financing<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Equity financing is defined as raising money from a third party investor and selling them a piece of your business in exchange for capital. This might be the right option if you\u2019re at the early stages of your business, or if you believe there\u2019s risk involved in getting the ball rolling. <\/span><\/p>\n\n<p><b>Upside:<\/b><span style=\"font-weight: 400;\"> You can receive funds without necessarily providing any background of profitability, and on top of that the investor only benefits if your business does well. So it\u2019s within the best interest of the investor to ensure that your company succeeds.<\/span><\/p>\n\n<p><b>Downside:<\/b><span style=\"font-weight: 400;\"> You\u2019re giving up a part of the ownership of your business, and you may be handing over a portion of control to the investor.<\/span><\/p>\n\n<p><b>Types of equity financing:<\/b><\/p>\n\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Friends, family, or another small investor<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Angel investors<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Venture capital firms<\/span><\/li>\n<\/ul>\n\n<h3><span style=\"font-weight: 400;\">Debt financing<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Debt financing is defined as borrowing money to help invest in your growth. In comparison to equity financing, with debt financing you\u2019ll want to have a clearer idea of your company\u2019s profitability and ability to repay the loan.<\/span><\/p>\n\n<p><b>Upside:<\/b><span style=\"font-weight: 400;\"> You don\u2019t need to hand over any portion of your company to the investor, and you maintain full ownership.<\/span><\/p>\n\n<p><b>Downside:<\/b><span style=\"font-weight: 400;\"> There\u2019s always a risk with borrowing money, particularly if you\u2019re not exactly sure about whether or not you can pay back the investment. The loan provider is less concerned with your company\u2019s ability to thrive and more concerned with just getting their money paid back with interest.<\/span><\/p>\n\n<p><b>Types of debt financing:<\/b><\/p>\n\n<ul>\n<li style=\"font-weight: 400;\"><a href=\"https:\/\/www.become.co\/asset-based-loan\/\" target=\"_blank\" rel=\"noopener noreferrer\"><span style=\"font-weight: 400;\">Term loans<\/span><\/a><span style=\"font-weight: 400;\"> &#8211; a loan for a specific amount, that is paid over a specific period of time (term)<\/span><\/li>\n<li style=\"font-weight: 400;\"><a href=\"https:\/\/www.become.co\/blog\/credit-cards-offers\/\" target=\"_blank\" rel=\"noopener noreferrer\"><span style=\"font-weight: 400;\">Credit cards<\/span><\/a><span style=\"font-weight: 400;\"> &#8211; <\/span><span style=\"font-weight: 400;\">a card that is issued by a financial institution that allows the cardholder to borrow funds<\/span><\/li>\n<li style=\"font-weight: 400;\"><a href=\"https:\/\/www.become.co\/invoice-factoring\/\" target=\"_blank\" rel=\"noopener noreferrer\"><span style=\"font-weight: 400;\">Invoice factoring<\/span><\/a><span style=\"font-weight: 400;\"> &#8211; selling accounts receivable (outstanding invoices) to a third party in exchange for immediate funds<\/span><\/li>\n<li style=\"font-weight: 400;\"><a href=\"https:\/\/www.become.co\/merchant-cash-advance\/\" target=\"_blank\" rel=\"noopener noreferrer\"><span style=\"font-weight: 400;\">Merchant cash advance<\/span><\/a><span style=\"font-weight: 400;\"> &#8211; <\/span><span style=\"font-weight: 400;\">funds provided upfront in exchange for a portion of the funds the business receives from future credit card transactions<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Line of credit &#8211; essentially the same thing as a credit card, but funds can be accessed through other means (writing a check, withdrawing cash, etc.)<\/span><\/li>\n<\/ul>\n\n<h3><span style=\"font-weight: 400;\">Which to choose, when, and why<\/span><\/h3>\n<p><span style=\"font-weight: 400;\">Equity financing is best for startups in industries such as high-tech, where the return on investment is projected to be astronomical. And that makes sense, being that angel investors and venture capitalists aim to gain a percentage of ownership of a company that will flourish.<\/span><\/p>\n\n<blockquote>\n<p><strong>One important note:\u00a0<\/strong>Of course, the type of business will affect the kind of\u00a0<a href=\"https:\/\/www.become.co\/loans-by-industry\/\" target=\"_blank\" rel=\"noopener noreferrer\">industry loans<\/a>\u00a0a business needs,\u00a0as well as the specific circumstances that business finds itself in. Be sure to weigh your options carefully in order to choose the right funding solution for your business.<\/p>\n<\/blockquote>\n\n<p><span style=\"font-weight: 400;\">Debt financing is better for established companies that have proven their profitability, and for owners who want to retain full rights of possession. If the risk involved in running your business is minimal, then there\u2019s not such a need to share that little bit of risk at the price of giving over a portion of ownership. And on top of that, the <\/span><a href=\"https:\/\/bondstreet.com\/understanding-debt-vs-equity-financing\/\" target=\"_blank\" rel=\"noopener noreferrer\"><span style=\"font-weight: 400;\">interest rates for debt financing<\/span><\/a><span style=\"font-weight: 400;\"> are lower than the return on equity investments.<\/span><\/p>\n\n<table>\n<tbody>\n<tr>\n<td>\u00a0<\/td>\n<td>\n<p><b>When<\/b><\/p>\n<\/td>\n<td>\n<p><b>Why<\/b><\/p>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Equity Financing<\/b><\/p>\n<\/td>\n<td>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Business is new and unstable<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Risk is high<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Projected return on investment is high<\/span><\/li>\n<\/ul>\n<\/td>\n<td>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Gain an investor who cares about the success of your business<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">You lack the assets to put up as collateral<\/span><\/li>\n<\/ul>\n<\/td>\n<\/tr>\n<tr>\n<td>\n<p><b>Debt Financing<\/b><\/p>\n<\/td>\n<td>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Business is well-established<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Risk is minimal<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">You need options that offer flexibility<\/span><\/li>\n<\/ul>\n<\/td>\n<td>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Retain full ownership<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Lower interest rates<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Steady repayment schedule<\/span><\/li>\n<\/ul>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p><br \/><br \/><\/p>\n<h2><span style=\"font-weight: 400;\">How debt can help you to avoid cash flow issues<\/span><\/h2>\n\n<p><span style=\"font-weight: 400;\">Having a healthy cash flow is crucial to developing and maintaining your business\u2019s value. Debt may seem counterintuitive to keeping a positive cash flow, but, if handled wisely, debt actually can be the key to sustaining a strong cash flow.<\/span><\/p>\n\n<p><span style=\"font-weight: 400;\">Getting a <\/span><a href=\"https:\/\/www.become.co\/business-line-of-credit\/\" target=\"_blank\" rel=\"noopener noreferrer\"><span style=\"font-weight: 400;\">line of credit<\/span><\/a><span style=\"font-weight: 400;\"> is one of the most practical forms of debt that can be used to manage cash flow issues. But why is debt good for a company?<\/span><\/p>\n\n<p><b> A business line of credit is a type of good debt because:<\/b><\/p>\n\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">It provides readily available cash upon request<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">The interest rates for a line of credit are significantly lower than the rates for other types of business loans<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">You\u2019ll only pay interest on the amount you use, not the entire amount of the line of credit<\/span><\/li>\n<\/ul>\n\n<p><span style=\"font-weight: 400;\">If your business is facing cash flow issues, don\u2019t discount the usefulness of debt. The important thing is not avoiding debt, but learning how to use good debt. <\/span><\/p>\n\n<blockquote>\n<p><span style=\"font-weight: 400;\">Debt is a tool that can hurt or heal &#8211; the effect that it has is a result of the manner in which a <\/span><span style=\"font-weight: 400;\">uses it. <\/span><\/p>\n<\/blockquote>\n\n<h2><span style=\"font-weight: 400;\">Establishing a healthy debt level<\/span><\/h2>\n\n<p><span style=\"font-weight: 400;\">We\u2019ve covered good debt vs bad debt &#8211; now we\u2019ll fill you in on how to use good debt to establish a healthy debt level.<\/span><span style=\"font-weight: 400;\"><br \/><\/span><span style=\"font-weight: 400;\"><br \/><\/span><b>Questions to ask yourself in order to maintain a healthy level of debt:<\/b><\/p>\n\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Are you incurring this debt in order to obtain something that will appreciate in value?<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Are you able to manage the debt and make regularly scheduled payments on time?<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Is the interest rate affordable? Will it change?<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Is the debt limited? Meaning, is it a revolving account like a payday loan or credit card?<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Are you sure that this debt is completely necessary? Can you avoid this expense?<\/span><\/li>\n<\/ul>\n\n<p><span style=\"font-weight: 400;\">If you can answer \u2018no\u2019 to any of the above questions, you should probably avoid that debt &#8211; or at least reassess your plan on how to manage it.<\/span><\/p>\n\n<p><span style=\"font-weight: 400;\">If your answer to those questions is \u2018yes\u2019 across the board, then the next step is to make sure you don\u2019t take on too much debt. Even for types of good debt, too much can be harmful to your business.<\/span><\/p>\n<p><br \/><br \/><\/p>\n<h2><span style=\"font-weight: 400;\">Good debt vs bad debt &#8211; The perfect ratio<\/span><\/h2>\n\n<p><span style=\"font-weight: 400;\">A debt ratio is calculated by dividing the total liabilities by the total assets. If you are financing your business with debt, the debt ratio will be higher.<\/span><\/p>\n\n<p><img decoding=\"async\" class=\"aligncenter wp-image-8394 size-full\" src=\"https:\/\/www.become.co\/blog\/wp-content\/uploads\/2019\/03\/purple-equation-02.jpg\" alt=\"Good debt vs bad debt\" width=\"651\" height=\"160\" srcset=\"https:\/\/www.become.co\/blog\/wp-content\/uploads\/2019\/03\/purple-equation-02.jpg 651w, https:\/\/www.become.co\/blog\/wp-content\/uploads\/2019\/03\/purple-equation-02-300x74.jpg 300w, https:\/\/www.become.co\/blog\/wp-content\/uploads\/2019\/03\/purple-equation-02-604x148.jpg 604w\" sizes=\"(max-width: 651px) 100vw, 651px\" \/><\/p>\n\n<p>Typically, the <a href=\"https:\/\/www.investopedia.com\/ask\/answers\/021215\/what-good-debt-ratio-and-what-bad-debt-ratio.asp\" target=\"_blank\" rel=\"noopener noreferrer\">target debt ratio<\/a> is said to be 0.40 (40%) or lower. Debt ratios over that may raise doubts among lenders about the ability for the debt to be repaid. Too much debt will drag on cash flow and can ultimately result in the need to declare bankruptcy.<\/p>\n\n<blockquote>\n<p><span style=\"font-weight: 400;\">But it\u2019s not enough to focus on the ratio itself &#8211; in order to determine whether it\u2019s a good debt ratio or a bad debt ratio, you\u2019ll also need to consider the form of debt and the financial status of the business.<\/span><\/p>\n<\/blockquote>\n\n<h3><span style=\"font-weight: 400;\">Balancing your debt ratio:<\/span><\/h3>\n\n<ul>\n<li style=\"font-weight: 400;\"><b>High debt ratios<\/b><span style=\"font-weight: 400;\"> &#8211; even debt ratios as high as 0.60 (60%) aren\u2019t necessarily disqualifiers for getting approved for a loan. The determination as to whether the debt ratio is \u2018good\u2019 or \u2018bad\u2019 is made by assessing many factors, including the industry the business is in, payment history, credit worthiness, and so on.\u00a0<\/span><\/li>\n<\/ul>\n\n<ul>\n<li style=\"font-weight: 400;\"><b>Small debt ratios<\/b><span style=\"font-weight: 400;\"> &#8211; it\u2019s also important not to have a debt ratio that\u2019s too small. It seems a bit paradoxical at first, but investors won\u2019t normally be jumping at the opportunity to invest in a company that has an extremely low debt ratio.<\/span><\/li>\n<\/ul>\n\n<ul>\n<li style=\"font-weight: 400;\"><b>Zero debt ratios<\/b><span style=\"font-weight: 400;\"> &#8211; this means that the company in question doesn\u2019t borrow at all, signifying the reluctance of the business-owner to take risks. It also means that shareholders have less to gain, as the company\u2019s returns will be limited. <\/span><\/li>\n<\/ul>\n\n<p><b>Bottom line<\/b><span style=\"font-weight: 400;\">: there\u2019s also risk involved in extremely low debt ratios. The debt ratio \u2018sweet spot\u2019 is somewhere between 0.3 and 0.6 &#8211; you\u2019ll have to investigate the investors you intend on approaching, what the debt ratio was over other companies they have funded, and so on.<\/span><\/p>\n\n<h2><span style=\"font-weight: 400;\">In a nutshell<\/span><\/h2>\n\n<p><span style=\"font-weight: 400;\">We\u2019ve delved deep into the discussion of good debt vs bad debt. When we started, you may have been wondering \u201cwhy is debt good for a company\u201d. You may have even flat-out believed that debt is a bad thing.<\/span><\/p>\n\n<p><span style=\"font-weight: 400;\">Now you\u2019ve learned that there are such things as types of good debt, and you\u2019ve even learned how to use good debt. Yes, there are types of bad debt that should be avoided. But what ultimately designates a type of debt as \u2018good\u2019 or \u2018bad\u2019 is how you use it.<\/span><\/p>\n\n<p><span style=\"font-weight: 400;\">The lesson to take away is that learning how to use good debt is crucially important to the health of your business. So start with the info that we have provided you here, and don\u2019t hesitate to bookmark this page for future reference.<\/span><\/p>\n\n<p><span style=\"font-weight: 400;\">If there are any questions you feel were left unanswered, please feel free to comment below!<\/span><\/p>\n\n","protected":false},"excerpt":{"rendered":"<p>Debt &#8211; the four letter word that we\u2019ve learned to dread and to avoid at all costs. The advice you may have heard growing up was to not spend money that you don\u2019t have. The truth may come as a shock to you: 80% of Americans are currently in debt. Let that sink in for [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":5203,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[13,79,1,12],"tags":[171,44,35,42,168,131,140,170,162],"class_list":["post-5190","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-aus-resources","category-business-guides","category-uncategorized","category-us-resources","tag-bad-debt","tag-credit","tag-credit-card","tag-credit-score","tag-debt","tag-financing","tag-funding","tag-good-debt","tag-investors"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.2 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>What is Good Debt and Bad Debt? - Business Funding Blog<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.become.co\/blog\/good-debt-versus-bad-debt\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"What is Good Debt and Bad Debt? - Business Funding Blog\" \/>\n<meta property=\"og:description\" content=\"Debt &#8211; the four letter word that we\u2019ve learned to dread and to avoid at all costs. The advice you may have heard growing up was to not spend money that you don\u2019t have. The truth may come as a shock to you: 80% of Americans are currently in debt. Let that sink in for [&hellip;]\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.become.co\/blog\/good-debt-versus-bad-debt\/\" \/>\n<meta property=\"og:site_name\" content=\"Business Funding Blog\" \/>\n<meta property=\"article:published_time\" content=\"2019-03-04T14:39:11+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2019-07-25T13:53:19+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/d2y0x0ts101nr7.cloudfront.net\/2019\/03\/iStock-1030357588-1.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1224\" \/>\n\t<meta property=\"og:image:height\" content=\"857\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Become\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Become\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"16 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/www.become.co\/blog\/good-debt-versus-bad-debt\/#article\",\"isPartOf\":{\"@id\":\"https:\/\/www.become.co\/blog\/good-debt-versus-bad-debt\/\"},\"author\":{\"name\":\"Become\",\"@id\":\"https:\/\/www.become.co\/blog\/#\/schema\/person\/813104bb9784ace7d518254945f76ccf\"},\"headline\":\"What is Good Debt and Bad Debt?\",\"datePublished\":\"2019-03-04T14:39:11+00:00\",\"dateModified\":\"2019-07-25T13:53:19+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/www.become.co\/blog\/good-debt-versus-bad-debt\/\"},\"wordCount\":3179,\"publisher\":{\"@id\":\"https:\/\/www.become.co\/blog\/#organization\"},\"image\":{\"@id\":\"https:\/\/www.become.co\/blog\/good-debt-versus-bad-debt\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/d2y0x0ts101nr7.cloudfront.net\/2019\/03\/iStock-1030357588-1.jpg\",\"keywords\":[\"bad debt\",\"credit\",\"credit card\",\"credit score\",\"debt\",\"financing\",\"funding\",\"good debt\",\"investors\"],\"articleSection\":{\"0\":\"AUS Resources\",\"1\":\"Business Loan Guides\",\"3\":\"US Resources\"},\"inLanguage\":\"en-US\"},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.become.co\/blog\/good-debt-versus-bad-debt\/\",\"url\":\"https:\/\/www.become.co\/blog\/good-debt-versus-bad-debt\/\",\"name\":\"What is Good Debt and Bad Debt? - Business Funding Blog\",\"isPartOf\":{\"@id\":\"https:\/\/www.become.co\/blog\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/www.become.co\/blog\/good-debt-versus-bad-debt\/#primaryimage\"},\"image\":{\"@id\":\"https:\/\/www.become.co\/blog\/good-debt-versus-bad-debt\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/d2y0x0ts101nr7.cloudfront.net\/2019\/03\/iStock-1030357588-1.jpg\",\"datePublished\":\"2019-03-04T14:39:11+00:00\",\"dateModified\":\"2019-07-25T13:53:19+00:00\",\"breadcrumb\":{\"@id\":\"https:\/\/www.become.co\/blog\/good-debt-versus-bad-debt\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/www.become.co\/blog\/good-debt-versus-bad-debt\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.become.co\/blog\/good-debt-versus-bad-debt\/#primaryimage\",\"url\":\"https:\/\/d2y0x0ts101nr7.cloudfront.net\/2019\/03\/iStock-1030357588-1.jpg\",\"contentUrl\":\"https:\/\/d2y0x0ts101nr7.cloudfront.net\/2019\/03\/iStock-1030357588-1.jpg\",\"width\":1224,\"height\":857},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/www.become.co\/blog\/good-debt-versus-bad-debt\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/www.become.co\/blog\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"What is Good Debt and Bad Debt?\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/www.become.co\/blog\/#website\",\"url\":\"https:\/\/www.become.co\/blog\/\",\"name\":\"Become - Powering Small Business Funding\",\"description\":\"Become - Powering Small Business Growth &amp; Funding\",\"publisher\":{\"@id\":\"https:\/\/www.become.co\/blog\/#organization\"},\"alternateName\":\"Become\",\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/www.become.co\/blog\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"en-US\"},{\"@type\":\"Organization\",\"@id\":\"https:\/\/www.become.co\/blog\/#organization\",\"name\":\"Become\",\"url\":\"https:\/\/www.become.co\/blog\/\",\"logo\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.become.co\/blog\/#\/schema\/logo\/image\/\",\"url\":\"https:\/\/www.become.co\/blog\/wp-content\/uploads\/2024\/05\/become-logo.png\",\"contentUrl\":\"https:\/\/www.become.co\/blog\/wp-content\/uploads\/2024\/05\/become-logo.png\",\"width\":521,\"height\":97,\"caption\":\"Become\"},\"image\":{\"@id\":\"https:\/\/www.become.co\/blog\/#\/schema\/logo\/image\/\"}},{\"@type\":\"Person\",\"@id\":\"https:\/\/www.become.co\/blog\/#\/schema\/person\/813104bb9784ace7d518254945f76ccf\",\"name\":\"Become\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/secure.gravatar.com\/avatar\/fe7f651e825010ea56157701c4621218ea2afee5a0650ba96e61ae728e20e667?s=96&d=mm&r=g\",\"url\":\"https:\/\/secure.gravatar.com\/avatar\/fe7f651e825010ea56157701c4621218ea2afee5a0650ba96e61ae728e20e667?s=96&d=mm&r=g\",\"contentUrl\":\"https:\/\/secure.gravatar.com\/avatar\/fe7f651e825010ea56157701c4621218ea2afee5a0650ba96e61ae728e20e667?s=96&d=mm&r=g\",\"caption\":\"Become\"},\"url\":\"https:\/\/www.become.co\/blog\/author\/algoseller\/\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"What is Good Debt and Bad Debt? - Business Funding Blog","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/www.become.co\/blog\/good-debt-versus-bad-debt\/","og_locale":"en_US","og_type":"article","og_title":"What is Good Debt and Bad Debt? - Business Funding Blog","og_description":"Debt &#8211; the four letter word that we\u2019ve learned to dread and to avoid at all costs. The advice you may have heard growing up was to not spend money that you don\u2019t have. The truth may come as a shock to you: 80% of Americans are currently in debt. Let that sink in for [&hellip;]","og_url":"https:\/\/www.become.co\/blog\/good-debt-versus-bad-debt\/","og_site_name":"Business Funding Blog","article_published_time":"2019-03-04T14:39:11+00:00","article_modified_time":"2019-07-25T13:53:19+00:00","og_image":[{"width":1224,"height":857,"url":"https:\/\/d2y0x0ts101nr7.cloudfront.net\/2019\/03\/iStock-1030357588-1.jpg","type":"image\/jpeg"}],"author":"Become","twitter_card":"summary_large_image","twitter_misc":{"Written by":"Become","Est. reading time":"16 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/www.become.co\/blog\/good-debt-versus-bad-debt\/#article","isPartOf":{"@id":"https:\/\/www.become.co\/blog\/good-debt-versus-bad-debt\/"},"author":{"name":"Become","@id":"https:\/\/www.become.co\/blog\/#\/schema\/person\/813104bb9784ace7d518254945f76ccf"},"headline":"What is Good Debt and Bad Debt?","datePublished":"2019-03-04T14:39:11+00:00","dateModified":"2019-07-25T13:53:19+00:00","mainEntityOfPage":{"@id":"https:\/\/www.become.co\/blog\/good-debt-versus-bad-debt\/"},"wordCount":3179,"publisher":{"@id":"https:\/\/www.become.co\/blog\/#organization"},"image":{"@id":"https:\/\/www.become.co\/blog\/good-debt-versus-bad-debt\/#primaryimage"},"thumbnailUrl":"https:\/\/d2y0x0ts101nr7.cloudfront.net\/2019\/03\/iStock-1030357588-1.jpg","keywords":["bad debt","credit","credit card","credit score","debt","financing","funding","good debt","investors"],"articleSection":{"0":"AUS Resources","1":"Business Loan Guides","3":"US Resources"},"inLanguage":"en-US"},{"@type":"WebPage","@id":"https:\/\/www.become.co\/blog\/good-debt-versus-bad-debt\/","url":"https:\/\/www.become.co\/blog\/good-debt-versus-bad-debt\/","name":"What is Good Debt and Bad Debt? - Business Funding Blog","isPartOf":{"@id":"https:\/\/www.become.co\/blog\/#website"},"primaryImageOfPage":{"@id":"https:\/\/www.become.co\/blog\/good-debt-versus-bad-debt\/#primaryimage"},"image":{"@id":"https:\/\/www.become.co\/blog\/good-debt-versus-bad-debt\/#primaryimage"},"thumbnailUrl":"https:\/\/d2y0x0ts101nr7.cloudfront.net\/2019\/03\/iStock-1030357588-1.jpg","datePublished":"2019-03-04T14:39:11+00:00","dateModified":"2019-07-25T13:53:19+00:00","breadcrumb":{"@id":"https:\/\/www.become.co\/blog\/good-debt-versus-bad-debt\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/www.become.co\/blog\/good-debt-versus-bad-debt\/"]}]},{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.become.co\/blog\/good-debt-versus-bad-debt\/#primaryimage","url":"https:\/\/d2y0x0ts101nr7.cloudfront.net\/2019\/03\/iStock-1030357588-1.jpg","contentUrl":"https:\/\/d2y0x0ts101nr7.cloudfront.net\/2019\/03\/iStock-1030357588-1.jpg","width":1224,"height":857},{"@type":"BreadcrumbList","@id":"https:\/\/www.become.co\/blog\/good-debt-versus-bad-debt\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/www.become.co\/blog\/"},{"@type":"ListItem","position":2,"name":"What is Good Debt and Bad Debt?"}]},{"@type":"WebSite","@id":"https:\/\/www.become.co\/blog\/#website","url":"https:\/\/www.become.co\/blog\/","name":"Become - Powering Small Business Funding","description":"Become - Powering Small Business Growth &amp; Funding","publisher":{"@id":"https:\/\/www.become.co\/blog\/#organization"},"alternateName":"Become","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/www.become.co\/blog\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-US"},{"@type":"Organization","@id":"https:\/\/www.become.co\/blog\/#organization","name":"Become","url":"https:\/\/www.become.co\/blog\/","logo":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.become.co\/blog\/#\/schema\/logo\/image\/","url":"https:\/\/www.become.co\/blog\/wp-content\/uploads\/2024\/05\/become-logo.png","contentUrl":"https:\/\/www.become.co\/blog\/wp-content\/uploads\/2024\/05\/become-logo.png","width":521,"height":97,"caption":"Become"},"image":{"@id":"https:\/\/www.become.co\/blog\/#\/schema\/logo\/image\/"}},{"@type":"Person","@id":"https:\/\/www.become.co\/blog\/#\/schema\/person\/813104bb9784ace7d518254945f76ccf","name":"Become","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/secure.gravatar.com\/avatar\/fe7f651e825010ea56157701c4621218ea2afee5a0650ba96e61ae728e20e667?s=96&d=mm&r=g","url":"https:\/\/secure.gravatar.com\/avatar\/fe7f651e825010ea56157701c4621218ea2afee5a0650ba96e61ae728e20e667?s=96&d=mm&r=g","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/fe7f651e825010ea56157701c4621218ea2afee5a0650ba96e61ae728e20e667?s=96&d=mm&r=g","caption":"Become"},"url":"https:\/\/www.become.co\/blog\/author\/algoseller\/"}]}},"_links":{"self":[{"href":"https:\/\/www.become.co\/blog\/wp-json\/wp\/v2\/posts\/5190","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.become.co\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.become.co\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.become.co\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.become.co\/blog\/wp-json\/wp\/v2\/comments?post=5190"}],"version-history":[{"count":0,"href":"https:\/\/www.become.co\/blog\/wp-json\/wp\/v2\/posts\/5190\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.become.co\/blog\/wp-json\/wp\/v2\/media\/5203"}],"wp:attachment":[{"href":"https:\/\/www.become.co\/blog\/wp-json\/wp\/v2\/media?parent=5190"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.become.co\/blog\/wp-json\/wp\/v2\/categories?post=5190"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.become.co\/blog\/wp-json\/wp\/v2\/tags?post=5190"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}