Down with Debt

The best way to get out of debt is to not get into debt in the first place. People always talk about “good debt” and “bad debt”. There is no such thing as good debt. There is, however, a distinction between acceptable and unacceptable debt.

  •  Acceptable debt: A mortgage on a house in which you will raise your family.
  • Acceptable debt (within limits): A loan on a car that takes you to work and to visit family and friends.
  • Unacceptable debt: A credit card charge of 18% interest on items you wouldn’t have bought with cash.

Use the strategies and money management tips in this section, Down with Debt, to help you control and reduce your debt. If you or a loved one is considering bankruptcy, review this section to compare the benefits and drawbacks.