Good debt and bad debt
In the game not every debt costs the same. Every loan rate is the central bank rate of the economy plus a fixed margin: mortgage 1.5 points, car loan 3, consumer loan 5, overdraft 9. In a boom the game sets the central bank rate at 3 %, so the loans cost 4.5 %, 6 %, 8 % and 12 %.
On a debt of €5,000 that is €225, €300, €400 and €600 in interest over one year without repayment. Paid off in 24 equal monthly instalments, it costs €237.74 in total as a mortgage and €648.82 as an overdraft.
What a debt costs depends on its rate and its term. Whether it is worth it depends on what it pays for.
€5,000 paid off in 24 monthly instalments costs €237.74 in interest as a mortgage and €648.82 as an overdraft.
Simulated: figures from the game T.O.U.G.H., not statistics about real people.
Questions people ask
Why does an overdraft cost more than a mortgage?
In the game every loan is the central bank rate plus a margin, and the overdraft has the largest one: 9 points against 1.5 for a mortgage.
What is the difference between good and bad debt?
Not a moral one. It is whether the money pays for something that lasts longer than the debt, and how much the interest costs for it.
How much interest does a loan cost in monthly instalments?
In the game €5,000 over 24 months costs €237.74 in interest as a mortgage and €648.82 as an overdraft, worked out with equal instalments.
Source: Deutsche Bundesbank, MFI-Zinsstatistik, as of 19 October 2026
One debt as mortgage, car loan, consumer loan and overdraft, side by side.
The simulation, the comparison and the Beam stay free.
Education, not advice. Disclaimer