Question

When Keely moved back in with her parents because she needed to pay down some of her debts, her mother talked to her about the difference between productive and nonproductive debt. Which is an example of productive debt?

(1 point)
Responses

credit card debt

credit card debt

student loan debt

student loan debt

vacation expenses

vacation expenses

furniture payment plans

1 answer

The example of productive debt from the options provided is student loan debt. Productive debt is typically considered an investment in one’s future earning potential, such as taking on debt for education.