Good Debt vs Bad Debt – Smart Borrowing Skills
Good Debt vs Bad Debt
Smart Borrowing Skills
To help learners identify productive vs destructive debt, develop healthy borrowing habits, and use credit strategically to build long-term wealth.
🧩 Module 1: The Truth About Debt
Topics:
What is Debt? Understanding Borrowed Money
Why People Borrow – Needs, Wants, and Impulse
The Role of Credit in Modern Life
Myths and Misconceptions about Debt
Activity:
Reflective worksheet – “My relationship with borrowing”
What is Debt? Understanding Borrowed Money
Why People Borrow – Needs, Wants, and Impulse
The Role of Credit in Modern Life
Myths and Misconceptions about Debt
Activity:
Reflective worksheet – “My relationship with borrowing”
🧩 Module 2: Understanding Good Debt
Topics:
What Makes a Debt “Good”?
Productive vs Consumptive Debt
Examples: Education Loan, Business Loan, Home Loan
The Multiplier Effect of Good Debt
Activity:
Case Study – “How an Education Loan Transformed a Career”
What Makes a Debt “Good”?
Productive vs Consumptive Debt
Examples: Education Loan, Business Loan, Home Loan
The Multiplier Effect of Good Debt
Activity:
Case Study – “How an Education Loan Transformed a Career”
🧩 Module 3: Understanding Bad Debt
Topics:
What Makes a Debt “Bad”?
High-Interest Debt Traps (Credit Cards, EMI Lifestyle)
Emotional Spending & Instant Gratification
Signs You’re Falling into Debt Trouble
Activity:
Self-quiz – “Am I in a Debt Trap?”
What Makes a Debt “Bad”?
High-Interest Debt Traps (Credit Cards, EMI Lifestyle)
Emotional Spending & Instant Gratification
Signs You’re Falling into Debt Trouble
Activity:
Self-quiz – “Am I in a Debt Trap?”
🧩 Module 4: Smart Borrowing Framework
Topics:
The 5 Rules of Smart Borrowing
Evaluating ROI (Return on Investment) Before Borrowing
The “EMI-to-Income Ratio” Formula
When to Avoid Taking Loans
Activity:
Practical Sheet – “Before I Borrow” Checklist
The 5 Rules of Smart Borrowing
Evaluating ROI (Return on Investment) Before Borrowing
The “EMI-to-Income Ratio” Formula
When to Avoid Taking Loans
Activity:
Practical Sheet – “Before I Borrow” Checklist
🧩 Module 5: Managing & Reducing Debt
Topics:
How to Manage Multiple Loans
Snowball vs Avalanche Repayment Methods
Negotiating with Lenders & Credit Score Awareness
Emergency Fund vs EMI Fund
Activity:
Create Your Debt Repayment Plan Template
How to Manage Multiple Loans
Snowball vs Avalanche Repayment Methods
Negotiating with Lenders & Credit Score Awareness
Emergency Fund vs EMI Fund
Activity:
Create Your Debt Repayment Plan Template
🧩 Module 6: From Debt to Prosperity
Topics:
Turning Bad Debt into Good Debt
Leveraging Debt for Business or Assets
Mindset Shift: Debt as a Financial Tool
The Path to Debt Freedom
Activity:
Worksheet – “Design Your Debt-Free Date”
Turning Bad Debt into Good Debt
Leveraging Debt for Business or Assets
Mindset Shift: Debt as a Financial Tool
The Path to Debt Freedom
Activity:
Worksheet – “Design Your Debt-Free Date”
🧠 Bonus Module: ArthIQ AI Smart Debt Coach
Topics:
How to Ask ArthIQ AI for Personalized Advice
Chat Examples: “Should I take this loan?”, “How to repay faster?”
Activity:
Try Live Chat with ArthIQ AI on arthsamruddhi.ai
How to Ask ArthIQ AI for Personalized Advice
Chat Examples: “Should I take this loan?”, “How to repay faster?”
Activity:
Try Live Chat with ArthIQ AI on arthsamruddhi.ai
🏆 Certification
After successful completion, learners earn:
🎓 Certificate in Smart Borrowing Skills – Arthsamruddhi.ai
🎓 Certificate in Smart Borrowing Skills – Arthsamruddhi.ai
