Credit Cards Rates

Apply for credit card here


Good Debt vs. Bad Credit — Understanding Credit Card Debt

Tips By :
Today, many find themselves drowning in financial debt from credit cards and other financial obligations. If you’re one of those looking for a life jacket, it is important to know that there’s both good and bad debt.
Knowing the difference between each and how to manage them will not only give you opportunities for stashing away money for a rainy day or buying a new TV without credit cards, but it also could help you control what hits your credit report.

Good Debt
Mention “good debt” and most people turn an eyebrow and give you a “are you crazy?” look. This is because the word “debt” typically causes people to think of something bad — not something good. Debt usually means high credit card bills, high-rate loans, and other less-than-ideal financing situations.
Although it’s not as common, there is some good debt. For instance, the Motley Fool considers OK debt as anything with an interest rate well under 10% – preferably with some tax advantages. Examples of these include: home mortgages and student loans. However, vehicle loans are on the borderline since they can satisfy the low-rate requirement, but almost never appreciate.

Bad Debt
Although there’s good debt, bad debt is the most prevalent type of debt in our country now. With an average credit card debt of $8,000 for each household in America, we understand why most debt has a negative tone to it.
When you’re looking at your credit card debt and wondering if you’re accruing more bad debt than good debt, consider these:
Charging more than you pay: It’s simple — if you have a larger hole than the dirt you shovel into it, it will never become full. This is considered bad debt.
Maxed out cards: Not only do maxed out credit cards show your dependency on them, they also impact your credit score utilization rate, which could make a negative impact on your credit score.
Knowing the difference between good and bad debt is essential to staying ahead financially.
Remember, good debt is an investment that creates value, including: home mortgages or business loans. Bad debts are when you purchase disposable or durable goods using high-interest credit cards, but don’t pay the balance in full.
Use this knowledge to keep track of good and bad credit and try to take advantage of good credit whenever possible.
If you’re looking for more information on good and bad debt and how it impacts your credit score, look at other resources in our credit library.

UBS Global Wealth Management has closed its overweight position in U.S. equities and shifted to an overweight in emerging market and Japanese stocks, it said on Thursday. [...]
Thu, Apr 18, 2019 2:20:00 PM, Continue reading at the source
The new managers of Columna Commodities Fund, a Luxembourg hedge fund which went into liquidation in early 2017, have said they are suing its former managers Alter Domus for $56 million in lost... [...]
Thu, Apr 18, 2019 11:51:00 AM, Continue reading at the source
U.S. private equity firm Advent International Corp is preparing to launch a $2.2 billion fund to invest in Latin American companies, two people with knowledge of the matter told Reuters. [...]
Thu, Apr 18, 2019 5:04:00 AM, Continue reading at the source
Norway's sovereign wealth fund will pay about $98 million dollars to extend the term of its ownership in a portfolio of New York properties and to acquire a few new, the fund said on Wednesday. [...]
Wed, Apr 17, 2019 4:40:00 PM, Continue reading at the source
The major drivers of high U.S. corporate profit margins are unsustainable and "now under threat", which will eventually result in much lower equity prices, Bridgewater Associates, the world's largest... [...]
Wed, Apr 17, 2019 2:11:00 PM, Continue reading at the source

%d bloggers like this: