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Debt, which can come in the form of a personal loan, housing loan or even a study loan, can be classified as "healthy" or "unhealthy", depending on the purpose of the loan, the amount borrowed and your financial standing. Mr Lawrence Tan, Senior Manager at the Institute for Financial Literacy at SP, emphasised that "healthy" debt should support basic needs like education or housing, or serve a productive purpose like starting a business. In contrast, debt used for non-essential lifestyle expenses is considered "unhealthy" or "bad." He warned that taking a loan to invest is risky and generally not advisable unless the borrower has sufficient financial reserves. Mr Tan stressed that financial decisions should be based on actual capacity, not just risk appetite. He also recommended taking free online financial literacy courses, such as those offered by the Institute, before taking on any loans.

[CNA]