[SeeGeeWhy]

Mr.Coffee - Photon explained it pretty well.

Good debt is money that you get from other people for a cheap price. It is hard to come by so you should take it while you can and never pay down the principle, because it wasn't yours in the first place. A lender like a bank is typically happy to sit and collect interest on their money, and an entrepreneur like yourself is happy to take the difference on their annual return.

The point is to try to invest in assets that will give you a sustained return, or passive income, year on year. That way, the bank will continue to get it's cut while you continue to take in the difference until you are ready to sell and pay off the balance of the loan.

Some people like to go for one time hits, which is not a bad strategy, but with things like real estate, the longer you sit on something the more value it will have when you finally do sell. It is the cashflow you create in the time inbetween that makes the difference.

It all depends on your goals, the amount of time you have to dedicate to such plans, and your risk tolerance... but good debt should never be turned down.