Posted on Saturday, January 22, 2011
There are two kinds of debt: good and bad. An example of good debt is a mortgage. While you certainly don't enjoy paying the bill every month, you've made an investment and are earning equity. Bad debt comes in the form of credit card bills. You're paying interest and possibly fees to fund a purchase you probably couldn't afford in the first place. If you're in credit card debt now, the first step is to stop using the cards. Then call your providers and see if you can negotiate a lower monthly interest rate or get rid of fees -- any saved money can go toward paying off the balance.