Debt isn't good or bad by itself: it's a tool, and like any tool, the result depends on what you use it for. With what you already know about assets and liabilities (Level 2) and cash flow (Level 3), you have everything you need to tell debt that moves you toward financial freedom apart from debt that moves you away from it.
The rule is the same one you learned in Level 2, applied to borrowed money: if the debt finances an asset (something that generates more cash flow than the payment costs), it's good debt. If it finances a liability or pure consumption (something that only creates costs and loses value over time), it's bad debt. The amount borrowed says nothing on its own; what matters is what that money turns into.
The rest of this level will be available very soon.
