Moreover, the interest you’re paying on a credit card is not tax deductible and is not associated with an asset value and the debt is “bad” debt. Below are some examples of both types of debt: Good Debt – Mortgages, Student Loan, Car Loan. Bad Debt — Cards credit cards for Criteria for credit card debt relief. As a general rule, debt is good for a fixed amount of time and allows buy something of value, not debt that could not otherwise afford. Moreover, bad debt is “renewable” and is used as a substitute for money cash buy in many cases, essential products and services.