The third video in the series Financial Planning for Your Future is about debt. Watch this short video and find out what is considered good debt!
Debts used to make purchases that will not increase in value over time is 'bad debt'. In other word, almost all credit card purchases are not going to increase in value, and therefore, are 'bad debt'. Items purchased on a credit card are usually either something that was not in the budget or something to be paid next month for convenience. A checking account debit card will give the convenience of the quick transaction, but not allow money to be spent unless it is in the account.
The budget is key to paying off debt. Budget for expenses and plan to pay more that the minimum on credit cards. www.powerpay.org is a free site that helps develop a plan to pay debts off more quickly.
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