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October 07, 2003

Good debt vs. bad debt

You've heard debt is good. You've heard debt is bad. Which is it you ask?

Debt is good when it's used to invest or advance one's future. Debt is bad when it harms your future. I've seen and heard too many horror stories about the stress of thousands of dollars on credit cards on one family or individual. It's not right that millions of people share one thing in common: the burden of too much credit card debt.

Therefore, it's imperative that we promote and teach debt prevention to the up and coming generation.

It's actually pretty simple. You want to spend less than you earn. You don't want to put too much bad debt (items or purchases that hold little value) on credit cards because too quickly the credit card debt and minimum payments can eat away at all of your extra cash and prevent a person from budgeting and worse, saving money. Life is too short to start out in debt- teach your child how to avoid bad debt. One day they're going to need money to finance their dreams, their future. If in debt, they will find it much more difficult to do so.

Posted by on October 07, 2003 at 05:14 PM |

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