Yup – more talk about finances. Okay, we all know we shouldn’t spend more than we make, and shouldn’t incur more debt than we can afford, and yes, there is a difference, even though spending more than you make is more than you can afford. Anyway, is there such a thing as good debt? And, if you find yourself with too much debt, what can you do about it?
First, not all debt is bad. For example, not many people can save enough money to buy a house without the assistance of a mortgage loan; just don’t buy and finance more house than you can afford. And financing your education is another area that can be worthwhile. But sometimes we find ourselves saddled with too much debt, sometimes through our own fault and sometimes not. That’s bad. What do we do then?
You’ve got to have a plan to reduce your debt, or increase your income, or both. A lot of it is common sense, such as tracking your spending, but the important point is to start doing something to address the situation before it becomes even worse.
This article, on CNN Money, talks about managing your debt.