Which Debts Should You Pay First?

Paying off debt is a great way to build your long-term financial security. It isn’t easy, but the most effective way to wipe out your debt is to have a plan. For example, some experts suggest that you focus on paying off your smallest debts first, while making minimum payments on the larger ones. As you pay off each debt, you apply that payment to the next-smallest one. It’s an approach that works for many people, because it provides the satisfaction of seeing each debt
disappear. Continue reading

Good Debt, Bad Debt for Millennials

Good Debt Bad Debt Image

There are really two kinds of debt.  Bad debt is money you owe and have little chance to repay.  Credit card debt can stay with you for a long time, particularly with high interest rates.  You can end up paying off that mall shopping spree long after the clothes you bought have made their way to the local charity shop. Good debt, on the other hand, represents a risk you’ve taken, and may yield a financial reward.  Opening a business involves taking on a loan, but in exchange, you have the chance to build a constant source of cash for your life.  You need a loan to buy a house, but you can always sell the house, often making a tidy profit. Continue reading