Debt is one of the most misunderstood topics in personal finance. Some people believe that all debt is bad, while others assume that borrowing money is perfectly acceptable as long as the monthly payment fits within the budget.

The reality is more nuanced.

Debt is a financial tool. It can help you purchase a home, invest in education, expand a business, or acquire an asset that may generate future income. But debt can also consume future income, increase financial stress, and make it difficult to build savings and wealth.

That is why understanding good debt vs bad debt is so important.

The distinction is not simply about what you buy with borrowed money. The interest rate, loan term, affordability, expected benefit, depreciation, risk, and effect on your overall financial position all matter.

A mortgage may be reasonable for one household and financially dangerous for another. A student loan can potentially improve earning power, but an expensive degree with weak employment prospects may leave the borrower with substantial debt and limited financial benefit.

The goal is therefore not to memorize a list of “good” and “bad” debts.

The goal is to learn how to evaluate debt before you take it on.

1. What Is Debt?

Debt is money you borrow with an agreement to repay it, generally according to specific terms and often with interest and fees.

Common forms of debt include:

Mortgages
Student loans
Auto loans
Credit-card balances
Personal loans
Business loans
Lines of credit
Buy-now-pay-later balances
Payday loans

When you borrow money, you are essentially using some of your future income today.

That can be useful when the borrowed money produces a valuable future benefit.

It can become dangerous when you use future income to pay for purchases that provide little lasting financial value.

2. The Basic Difference Between Good Debt and Bad Debt

A simple way to think about the difference is:

Good debt

Debt that has a reasonable potential to improve your financial position or provide a valuable long-term benefit relative to its cost and risk.

Bad debt

Debt that primarily finances consumption, depreciating assets, or expenses you cannot comfortably afford, particularly when the interest and fees are high.

However, these definitions are not absolute.

A debt’s classification depends on its:

Interest rate
Fees
Repayment period
Monthly payment
Total cost
Purpose
Expected financial benefit
Risk
Impact on cash flow
Effect on net worth

3. Debt Is Not Automatically Good or Bad

Consider two people buying cars.

Person A

Buys an affordable vehicle
Makes a reasonable down payment
Chooses a manageable loan term
Has stable income
Maintains an emergency fund
Can comfortably afford the payment

Person B

Purchases a luxury vehicle
Makes little or no down payment
Uses a long loan term
Has significant existing debt
Has little emergency savings
Struggles to afford the monthly payment

Both people have auto loans.

But their financial situations are very different.

This illustrates an important principle:

The type of debt matters, but the terms and affordability matter just as much.

4. What Makes Debt Potentially “Good”?

Debt tends to be more financially productive when it helps you acquire something that can provide meaningful long-term value.

Potential characteristics include:

The asset may appreciate or retain substantial value.
The borrowed money can generate income.
The debt supports your ability to earn more.
The interest rate is reasonable.
The monthly payment is affordable.
The repayment period is appropriate.
The borrowing serves a clearly defined purpose.
The expected benefit justifies the total cost and risk.

Even then, there is no guarantee that the underlying asset will increase in value or produce the expected return.

5. Mortgages: Often Considered Good Debt

A mortgage is commonly classified as good debt because it allows you to purchase a property that may provide housing value and potentially appreciate over time.

However, homeownership is not automatically a profitable investment.

A property also comes with costs such as:

Mortgage interest
Property taxes
Insurance
Maintenance
Repairs
Utilities
Closing costs
Transaction costs
Potential homeowners’ association fees
Opportunity cost of the down payment

A home can appreciate while still being an expensive asset to own.

When a Mortgage May Be Reasonable

A mortgage may fit your financial plan when:

The payment is affordable.
You have sufficient emergency savings.
You expect to remain in the property long enough to justify transaction costs.
The total housing cost fits your budget.
You understand the loan terms.
You have considered maintenance and other ownership costs.

When a Mortgage Can Become Problematic

A mortgage can become financially dangerous if:

You borrow more than you can comfortably afford.
You have no emergency reserves.
You rely on uncertain future income.
You underestimate property-related costs.
You take on an unnecessarily expensive property to maintain a lifestyle image.

The label “mortgage” alone does not make a loan good.

6. Student Loans: Potentially Productive, but Not Automatically Good

Education can increase earning potential, but borrowing for education does not guarantee a financial return.

Before taking student debt, consider:

Total tuition
Housing costs
Fees
Interest
Expected graduation time
Employment prospects
Expected income
Career opportunities
Alternative education options
Opportunity cost
Existing debt

Suppose two programs cost very different amounts but lead to similar career opportunities.

The cheaper option may produce a better financial outcome even if both are technically investments in education.

Ask This Question

Instead of asking:

“Is student debt good debt?”

Ask:

“Does the expected benefit of this education justify the total cost and risk of borrowing?”

That is a much more useful question.

7. Business Loans: Good Debt or Bad Debt?

Borrowing money to start or expand a business can potentially create significant value.

For example, a business loan might be used to purchase:

Equipment
Inventory
Technology
Commercial property
Product-development resources
Marketing capacity

If the investment generates enough additional cash flow to justify the borrowing cost, the debt may be productive.

But businesses can fail.

A business loan can become a serious liability if:

Revenue projections are unrealistic.
The business has weak cash flow.
Interest costs are too high.
Borrowing is used to cover recurring losses indefinitely.
The business cannot comfortably service the debt.

Business debt should therefore be evaluated using realistic assumptions rather than optimistic projections.

8. Credit-Card Debt: Usually Expensive Consumer Debt

Credit cards are not inherently bad.

The problem is carrying expensive balances.

If you use a credit card and pay the statement balance in full, you may avoid interest on purchases under the card’s terms and potentially receive rewards or other benefits.

However, carrying a revolving balance can become expensive.

For example, suppose you spend:

$3,000

and cannot repay it.

If the card charges a high interest rate, the actual cost can become significantly greater than the original purchase.

You may end up paying interest long after the item you purchased has lost most or all of its value.

9. Payday Loans: Particularly High-Risk Debt

Payday loans and similar short-term high-cost borrowing can create serious financial problems.

The danger comes from combinations of:

High borrowing costs
Short repayment periods
Repeated borrowing
Fees
Automatic withdrawals
Insufficient cash flow

If someone repeatedly needs high-cost short-term loans to cover ordinary expenses, the underlying issue may be a cash-flow problem rather than a one-time borrowing need.

Before taking expensive short-term debt, consider whether alternatives exist, such as:

Reducing an immediate expense
Negotiating a payment arrangement
Using available savings
Seeking lower-cost credit
Increasing short-term income
Getting help from an appropriate nonprofit or financial counseling organization

10. Auto Loans: A Gray Area

A vehicle is often necessary for work, family, or daily life.

However, cars generally depreciate rather than appreciate.

This makes auto debt more complicated.

A Reasonable Auto Loan

You purchase a reliable vehicle that:

Meets your transportation needs
Fits comfortably within your budget
Has a manageable payment
Does not require excessive borrowing
Has a reasonable ownership cost

A Risky Auto Loan

You purchase a significantly more expensive vehicle than you need and finance it over a long period.

The vehicle may lose value while you continue making payments.

This can create negative equity, where the amount owed is greater than the vehicle’s market value.

11. Personal Loans: Evaluate the Purpose

A personal loan can be used for many different purposes.

The loan itself is not automatically good or bad.

For example, consolidating expensive debt into a genuinely lower-cost loan may improve your financial position if you avoid accumulating new balances.

But borrowing money for discretionary spending that you cannot otherwise afford can create another financial problem.

Always compare:

Interest rate
Origination fees
Other charges
Loan term
Monthly payment
Total repayment
Prepayment conditions
Whether the loan actually solves the underlying problem

12. Buy Now, Pay Later: Small Payments Can Hide Large Spending

Buy-now-pay-later products can make expensive purchases appear affordable because the payment is divided into smaller installments.

The danger is that you may focus on the installment rather than the total financial commitment.

For example:

A $1,200 purchase may be presented as:

$300 × 4 payments

The purchase still costs $1,200.

If you have multiple installment purchases at the same time, the commitments can quickly accumulate.

Before using installment financing, consider whether you could comfortably afford the full purchase without borrowing.

13. The Gray Area: Good Debt Can Become Bad Debt

Debt classifications are not permanent.

Consider a mortgage.

A reasonably sized mortgage with affordable payments may fit your financial plan.

But if you borrow so much that your housing costs consume most of your income, the same type of debt can become financially dangerous.

The same applies to education.

A moderate student loan for an education that significantly improves earning potential may be reasonable.

A very large loan for a program with uncertain employment prospects may be difficult to justify.

The purpose matters, but the numbers matter more.

14. Look at the Interest Rate

The interest rate is one of the most important factors when evaluating debt.

Suppose you borrow:

$10,000

At a low interest rate, the financing cost may be manageable.

At a high interest rate, the same $10,000 can become much more expensive.

The interest rate affects how much of your future income must be used to repay the debt.

Ask:

What is the annual interest rate?
Is the rate fixed or variable?
Can it change?
Are there fees?
Is there an introductory rate?
What happens when the introductory period ends?

Never evaluate debt based only on the monthly payment.

15. Look at the Total Cost of Borrowing

A low monthly payment can be misleading.

Suppose you have two loan options:

Loan	Monthly Payment	Term	Total Payments
Loan A	$600	3 years	$21,600
Loan B	$400	5 years	$24,000

Loan B has the lower monthly payment.

But if these were otherwise comparable and fees were excluded, you would pay more overall.

This demonstrates an important principle:

Lower monthly payments do not necessarily mean lower total costs.

16. Understand the Loan Term

The loan term determines how long you remain obligated to make payments.

A longer term can reduce the monthly payment, but it may increase total interest.

A shorter term may require higher monthly payments but can reduce the time you remain in debt and potentially reduce total interest.

When comparing loans, look at:

Monthly payment
Interest rate
Loan term
Total interest
Total repayment
Fees

17. Evaluate Debt Based on Cash Flow

A debt can be technically affordable while still making your budget too restrictive.

Suppose you earn:

$5,000 per month

and your essential expenses are:

$3,500

That leaves:

$1,500

before additional financial goals and discretionary spending.

If new debt adds:

$800 per month

you have only $700 remaining.

The debt may technically be payable, but it significantly reduces your flexibility.

That matters because financial resilience depends on more than simply avoiding missed payments.

18. Calculate Your Debt-to-Income Ratio

Debt-to-income ratio, commonly abbreviated DTI, compares debt payments with income.

A simplified formula is:

DTI = Monthly Debt Payments ÷ Gross Monthly Income × 100

For example:

Monthly debt payments:

$1,200

Gross monthly income:

$5,000

Calculation:

$1,200 ÷ $5,000 × 100 = 24%

Your DTI would be 24%.

Lenders may use different definitions and thresholds depending on the type of loan and jurisdiction, so a personal calculation is best treated as a planning tool rather than a universal approval standard.

19. Consider the Debt-to-Asset Relationship

Another useful question is:

What are you receiving in exchange for the debt?

If you borrow $20,000 for an asset that immediately becomes worth $12,000, you have created a significant gap between the debt and the asset value.

If you borrow money toward an asset that may retain or increase in value, the relationship may be more favorable—but there are no guarantees.

This is why simply calling debt “good” because it purchases an asset can be misleading.

20. Think About Depreciation

Depreciation matters because many consumer purchases lose value over time.

Examples include:

Cars
Electronics
Furniture
Appliances
Clothing
Some recreational equipment

If you finance a rapidly depreciating item over several years, you may still owe money after the item has lost much of its value.

This creates a mismatch:

Debt lasts → Asset value falls

That can be financially risky.

21. Debt for Consumption vs Debt for Investment

One of the simplest distinctions is between consumption and investment.

Consumption Debt

You borrow to enjoy something now.

Examples:

Vacation
Luxury shopping
Entertainment
Dining
Nonessential upgrades

Investment-Oriented Debt

You borrow with the intention of creating a future financial benefit.

Examples:

Education
Business equipment
Potentially income-producing property
Certain business investments

However, “investment” does not mean “guaranteed return.”

An investment can fail.

That is why you should always evaluate the downside as well as the potential benefit.

22. The Role of Opportunity Cost

Debt decisions should also account for what you could do with your money instead.

Suppose you have an extra $500 per month.

You could:

Pay additional debt
Build an emergency fund
Invest
Save for a home
Pay for education
Keep more cash available

The best choice depends on your circumstances.

For example, paying down a high-interest debt can provide a predictable financial benefit by reducing future interest costs.

Investing may offer higher long-term growth potential but carries uncertainty.

Keeping cash improves liquidity but may provide lower returns.

23. Good Debt Should Still Be Affordable

A debt can have a potentially productive purpose and still be too large.

For example, buying a home can be a reasonable financial goal.

But purchasing a home that leaves you unable to:

Save
Maintain the property
Handle emergencies
Pay other debts
Cover basic living expenses

can create serious financial stress.

The goal is not simply to acquire an asset.

The goal is to acquire it without destroying your financial flexibility.

24. Debt Avalanche vs Debt Snowball

Once you have debt, choosing a repayment strategy can help you make progress.

Debt Avalanche

The debt avalanche method focuses on the debt with the highest interest rate first.

For example:

Debt	Balance	Interest Rate
Credit Card A	$2,000	25%
Credit Card B	$3,000	20%
Personal Loan	$5,000	10%

Under an avalanche strategy, you would generally prioritize Credit Card A first while maintaining required minimum payments on the others.

Advantage

It generally minimizes interest when the loan terms are otherwise comparable and you follow the plan consistently.

25. The Debt Snowball Method

The debt snowball method focuses on the smallest balance first.

Using the same example:

Debt	Balance
Credit Card A	$2,000
Credit Card B	$3,000
Personal Loan	$5,000

You would focus on the $2,000 balance first.

Advantage

Paying off a small balance quickly can create a psychological win and simplify your finances.

The snowball may not minimize interest as efficiently as the avalanche method, but behavioral consistency matters.

A strategy you actually follow can be more valuable than a mathematically optimal strategy you abandon.

26. Refinancing Debt

Refinancing means replacing existing debt with new financing under different terms.

It can potentially help when the new loan has:

Lower interest
Lower fees
Better repayment terms
A more manageable structure

But refinancing is not automatically beneficial.

Compare:

New interest rate
Origination fees
Closing costs
Loan term
Monthly payment
Total interest
Prepayment conditions
Variable versus fixed rates

A lower monthly payment can sometimes result from extending the repayment period rather than actually reducing the total cost.

27. Debt Consolidation

Debt consolidation combines multiple debts into one new loan or payment structure.

Potential advantages include:

Fewer payments
Simpler organization
Potentially lower interest
Clearer repayment schedule

But consolidation can fail if the borrower:

Consolidates existing balances.
Continues using the old credit lines.
Accumulates new balances.
Ends up with both the consolidated debt and new debt.

Consolidation should address the underlying cash-flow and spending problem, not simply move balances around.

28. How Debt Affects Your Credit Profile

Debt can affect your credit profile in several ways.

Depending on the credit-scoring system and lender, factors may include:

Payment history
Credit utilization
Length of credit history
Types of credit
New credit applications

High revolving balances relative to available credit can negatively affect some credit scores.

Missing payments can also have significant consequences.

The exact scoring model and lending criteria vary, so avoid assuming that one specific behavior will produce the same result for every person or lender.

29. Good Debt vs Bad Debt: A Practical Comparison

Factor	Potentially Productive Debt	Potentially Harmful Debt
Purpose	Long-term benefit	Immediate consumption
Interest	Reasonable relative to benefit	High
Asset	May retain/grow value or produce income	Often depreciates rapidly
Cash flow	Comfortable	Strained
Repayment	Planned and manageable	Difficult
Risk	Understood	Underestimated
Total cost	Justifiable	Excessive
Effect on wealth	May improve net worth	May reduce financial flexibility

This table is a framework rather than an absolute classification system.

30. Questions to Ask Before Taking on Debt

Before borrowing money, ask yourself:

Question 1: What am I buying?

Be specific.

Question 2: Do I actually need it?

Separate needs from wants.

Question 3: What is the total cost?

Do not look only at the monthly payment.

Question 4: What is the interest rate?

Know exactly what borrowing costs.

Question 5: Are there fees?

Look for origination, closing, annual, late, or other applicable charges.

Question 6: How long will I be paying?

Understand the full repayment timeline.

Question 7: What happens if my income falls?

Stress-test the payment.

Question 8: What happens if the asset loses value?

Consider depreciation and negative-equity risk.

Question 9: What am I giving up by making this payment?

Consider the effect on savings and other goals.

Question 10: Would I still take this loan if nobody knew what I purchased?

This can help separate genuine financial needs from lifestyle pressure.

31. The Debt Stress Test

Before taking on a large obligation, imagine that your income falls.

Suppose your monthly income is:

$5,000

and a new debt payment would be:

$700

Ask:

Could I still make the payment if my income temporarily fell to $4,000?

Also ask:

Would I still have enough for essentials?
Would I have to use credit cards?
Would I need to drain emergency savings?
Could I continue retirement contributions?
Could I handle an unexpected repair?

If the answer is no, the debt may be too large for your current financial situation.

32. Don’t Judge Debt Only by Its Monthly Payment

This is one of the most important lessons.

Suppose a lender says:

“You can afford $500 per month.”

That does not necessarily mean you should borrow enough to create a $500 monthly payment.

You need to consider:

Total interest
Loan term
Other debts
Insurance
Maintenance
Taxes
Emergency savings
Retirement
Other financial goals

A lender determines what you may qualify to borrow.

You determine what you can responsibly afford.

33. Debt Can Affect Your Financial Independence

Financial independence generally becomes easier when you have control over your income rather than having a large portion of it committed to debt payments.

High debt payments can limit your ability to:

Build an emergency fund
Invest
Change careers
Start a business
Take time off work
Move
Handle emergencies
Pursue other goals

This is why debt should be evaluated not only by whether you can make the payment but also by how much financial flexibility the payment removes.

34. Debt and Net Worth

Net worth is:

Net Worth = Assets − Liabilities

Suppose you own:

Home: $300,000
Investments: $50,000
Cash: $20,000

Total assets:

$370,000

And you owe:

Mortgage: $240,000
Auto loan: $15,000
Credit card: $5,000

Total liabilities:

$260,000

Your net worth is:

$370,000 − $260,000 = $110,000

Debt can sometimes help you acquire assets that increase your net worth.

But debt itself is still a liability.

The important question is whether the assets and financial benefits associated with the borrowing justify the cost and risk.

35. Don’t Assume Appreciation Will Save a Bad Loan

One common mistake is assuming:

“The asset will increase in value, so the debt must be good.”

There is no guarantee that an asset will appreciate.

Real estate can decline.

Businesses can fail.

Education may not produce the expected income increase.

Investments can lose value.

Therefore, evaluate the debt based on realistic assumptions rather than optimistic projections.

36. Watch for Debt That Becomes Permanent

Some forms of debt can become a recurring part of your lifestyle.

For example:

Borrow → repay → borrow again → repay → borrow again

This can prevent you from ever reaching a position where your income is primarily available for current needs, savings, and investments.

If borrowing becomes necessary to fund ordinary monthly expenses, the underlying budget may need to be reassessed.

37. Build an Emergency Fund Before Taking Large Risks

An emergency fund can provide a financial cushion when income or expenses change unexpectedly.

A commonly used guideline is several months of essential expenses, but the appropriate amount varies based on:

Job stability
Income variability
Household size
Insurance coverage
Debt obligations
Access to other resources

Maintaining an appropriate reserve can reduce the likelihood that an unexpected event forces you to take expensive new debt.

38. How to Improve Your Debt Strategy

If you currently have several debts, consider this process.

Step 1: List Every Debt

Record:

Balance
Interest rate
Minimum payment
Due date
Remaining term
Fees

Step 2: Separate High-Cost Debt

Identify the debts with the highest interest rates and fees.

Step 3: Protect Basic Liquidity

Maintain an emergency reserve appropriate for your circumstances.

Step 4: Choose Avalanche or Snowball

Select the strategy you are most likely to follow consistently.

Step 5: Avoid Adding New High-Cost Debt

Debt repayment becomes much harder if new balances continue accumulating.

Step 6: Review Progress Monthly

Track:

Beginning balance
Payments
Interest
Ending balance

39. A Simple Debt Evaluation Checklist

Before taking on new debt, check:

Purpose: ____________________

Amount borrowed: $________________

Interest rate: __________%

Loan term: ____________________

Monthly payment: $________________

Estimated total repayment: $________________

Fees: $________________

Expected benefit: ____________________

Risk if income falls: ____________________

Asset expected to retain/gain value? Yes / No / Uncertain

Can I comfortably afford the payment? Yes / No

Will this prevent me from reaching higher-priority goals? Yes / No

What is my exit or repayment plan? ____________________

If several answers concern you, reconsider the borrowing decision before signing the agreement.

40. Frequently Asked Questions

Is all debt bad?

No. Debt is a financial tool. Some borrowing can help finance assets, education, businesses, or other long-term goals. However, even potentially productive debt can become harmful if it is too expensive, too large, or poorly managed.

Is a mortgage good debt?

A mortgage is often considered potentially productive debt because it finances an asset that provides housing and may appreciate. However, property values are not guaranteed to rise, and homeownership includes substantial additional costs.

The affordability and terms of the mortgage matter.

Are student loans good debt?

They can be, particularly when the education materially improves earning potential relative to the total cost of attendance and borrowing. But there is no guarantee that a degree will produce a particular income or employment outcome.

Is credit-card debt always bad?

Carrying high-interest credit-card balances is generally expensive and can create financial stress. Using a credit card and paying the balance in full according to the card’s terms can be very different from carrying revolving debt.

Is an auto loan bad debt?

Not necessarily. A vehicle may be necessary for work and daily life. The concern is often borrowing too much for a depreciating asset or choosing terms that create excessive total costs.

Should I pay off debt before investing?

It depends on the debt and the investment opportunity.

High-interest debt often deserves significant priority because reducing the balance avoids a relatively predictable interest cost. However, emergency savings and available employer retirement benefits may also matter.

Consider interest rates, taxes, liquidity, risk, and your overall financial plan.

Should I pay off my mortgage early?

That depends on your mortgage rate, financial goals, emergency reserves, investment strategy, taxes, and personal preference.

Paying down a mortgage can reduce future interest and provide a predictable financial benefit. Investing the same money may offer greater long-term growth potential but carries market risk.

Can good debt become bad debt?

Yes.

A loan that is manageable at one level can become harmful if you borrow too much, accept unfavorable terms, lose income, or experience a major change in circumstances.

What is debt-to-income ratio?

Debt-to-income ratio compares your monthly debt payments with your gross monthly income.

DTI = Monthly Debt Payments ÷ Gross Monthly Income × 100

Lenders may calculate and interpret DTI differently depending on the loan and jurisdiction.

Is debt consolidation always a good idea?

No. Consolidation can simplify payments or reduce borrowing costs in some situations, but fees, loan terms, and the risk of accumulating new debt must be considered.

What is better: debt avalanche or debt snowball?

The avalanche method generally minimizes interest when applied consistently by targeting the highest-interest debt first. The snowball method targets the smallest balance and can provide faster psychological wins.

The best strategy is often the one you can maintain consistently.

41. Final Thoughts: Learn to Evaluate Debt, Not Just Label It

The debate over good debt vs bad debt is more complicated than simply putting mortgages and education in one category and credit cards and car loans in another.

The same type of debt can have very different outcomes depending on the borrower.

Before taking on debt, consider:

Why you are borrowing
How much you are borrowing
The interest rate
Fees
The total repayment cost
The loan term
The value of what you are purchasing
Whether it produces income or another meaningful long-term benefit
Your current cash flow
Your emergency savings
Your existing debt
The consequences if your income falls

A useful principle is:

Borrowing should improve your financial position or serve an important purpose without creating an unreasonable level of risk.

Potentially productive debt can help you acquire assets, develop skills, or build businesses. But debt is never automatically beneficial simply because it is attached to an asset or an investment.

Likewise, not every consumer loan is catastrophic if it is small, affordable, and repaid quickly.

The real danger comes from borrowing without understanding the cost, taking on payments you cannot comfortably afford, or using debt to repeatedly finance a lifestyle that your income cannot support.

When you evaluate debt based on cost, purpose, affordability, risk, and long-term consequences, you can make borrowing decisions that better support your financial goals.

Debt should be a tool you control—not an obligation that controls your future.

Financial Disclaimer

This article is provided for general educational and informational purposes only and should not be considered personalized financial, investment, credit, tax, legal, or lending advice. Debt products, interest rates, fees, credit-scoring systems, tax rules, consumer protections, and lending requirements vary by lender and jurisdiction. The classification of debt as “good” or “bad” is a general educational framework and does not guarantee a particular financial outcome. Before borrowing money, refinancing existing debt, investing, or making a major financial decision, carefully review the applicable terms and consider your own financial circumstances, goals, risk tolerance, and ability to repay. Consider consulting a qualified financial, tax, legal, or credit professional where appropriate.