Some debt can be helpful, and some debt is more harmful.
Some debt can be helpful. Generally, this is debt that comes with a low interest rate — like 5-10% or less — and will make a big difference for Future You. Something like student loans so you can potentially increase your future salary, or a mortgage, which gives you a place to live, something you’ll hopefully love for years, and also a major asset that could potentially get more valuable over time.
✓ Lower interest rate ✓Long-term benefits for Future You ✓ Affordable minimum payments
X Higher interest rate X Not an investment in Future You X Minimum payments that strain your budget
How can I lower my interest rate?
✓Look into refinancing
✓Call and ask! ✓Look for low-interest rate balance transfer offers ✓Consider personal loans carefully
✓Put your payments on auto-pay ✓Consider refinancing (private loans only)