Your liabilities show how much debt you carry. This last type of debt would include electric bills, gas bills, and telephone bills. The single, largest component of good debt would be your mortgage loan because your mortgage is for your house, which is an asset. You must report your mortgage loan on your liabilities worksheet. Americans have long been battling a war to reduce bad debt.
Bad debt makes up the bulk of the liabilities worksheet.
It is what siphons most consumer's paychecks. Bad debt is what you still owe on your car, your credit cards, your unsecured personal loans, and even your student loans. You only have to make a minimum payment to remain in the issuer's good graces. However, as other debts start adding up, you only meet the minimum payment for the next year or so, or at least until you get out of the hole with your other bills. Then, one year later, a friend drops her cigarette on the couch.