When is debt good and when is it bad? Tips for managing your loans

26/03/2026

We’re used to “buy now, pay later”, using our cards or taking out credit. But do you really know whether your debt is actually an investment or a burden? In this episode of the Economía de bolsillo podcastAbre en ventana nueva, Roberto España, shares some useful pointers. For example: avoid financing goods that will wear out before you finish repaying the loan, and learn to tell “good debt” (taken out for studying or for carrying out an essential refurbishment, for instance) from “bad debt” (to spend on something fleeting, like a holiday or a party).

The golden rule to keeping your finances healthy is that your debt repayments shouldn’t be more than one-third of your net income and you shouldn’t trivialise credit by borrowing for non-essentials that you could save for instead. Check out the episode for practical tips on using your cards responsibly and on keeping your personal finances in check, in case the unexpected should happen.