Financial Lit PSA
Bad debt is debt that isn't benefiting to your future like credit card debt. Good debt is debt that will help accelerate your future. Like an investment (house) or student loans (education)
You know you are in debt when your future money is being tied up to pay for non stop expenses without being able to save money. In simple terms when you're in the negatives.
Some debt traps to look for are any credit cards before you know what your doing with money or paying the minimum on your credit card. Spending money on useless stuff. Credit card surfing. Buying too large of a house or spending more than you can on living arrangements.
You can keep yourself out of debt by making smarter financial decisions like creating a proper budget and sticking to it. Stop spending money on useless things or just be smarter about money in general.
The best thing to do when your in debt is to start to spend less money every month and put some savings into paying off your debt. Even if it is slow.
Debt can bring you tons of unneeded stress to your life which could cause you to lose out on opportunities, get depressed, stop going to work. It can also just make your quality of life decrease.
In conclusion, debt can potentially be bad! So keep in mind the tips you've learned today!
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