Some debt, such as mortgage loans, comes at a low interest rate and is used to buy an asset that goes up in value. This kind of debt is widely thought of as "good debt."
But there's also bad debt. This is high-interest debt, such as credit cards or payday loans. When you take on this kind of debt, you'll get stuck sending a lot of your money to creditors with little to show for it in the end.
High-interest debt makes all your purchases costlier due to the interest you pay. It also robs you of financial flexibility since you're committed to monthly payments.
You'll want to pay this kind of debt off ASAP. These 15 steps can help you do just that.
5 Winning Stocks Under $49
We hear it over and over from investors, “I wish I had bought Amazon or Netflix when they were first recommended by the Motley Fool. I’d be sitting on a gold mine!” And it’s true. And while Amazon and Netflix have had a good run, we think these 5 other stocks are screaming buys. And you can buy them now for less than $49 a share! Simply click here to learn how to get your copy of “5 Growth Stocks Under $49” for FREE for a limited time only.
Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.