More Banker Speak

How good are you at Debt Management?

Some debt is considered "good debt," like for instance student loans. Let's face it, we would all love to have paid for school out of pocket, and perhaps you are one of the lucky ones that had parents who game planned your future. However, there are many of us that do have this kind of debt and it is important to see the end goal of such debt. One day, hopefully, you will be earning well beyond what you could have earned without the degree.

Likewise, establishing credit early is a good thing, but the temptation to use your card can lead to unwanted debt. Another trap is the lure of "points". These things sound too good to be true and many cases are.

The reality is that you spend with your credit card more frequently and therefore are more willing to use that card for bigger purchases that you will justify paying off later for those pesky points. There in lies the trap. The fees that you end up paying in finance charges override the actual benefit of receing those points.

Too good to be true indeed. Yet, there are some people out there who can balance all of this. If you're one of them, you indeed are not just one of the statistics.