Learn about good debt and bad debt and find out how to optimize your debt situation.

Debt is not always a bad thing when it comes to personal finance and financial wellness. Debt is commonly used by corporations and individuals to make large purchases that would otherwise be unaffordable (like houses and cars). Debt can be a good financial decision if the thing you are purchasing gives you utility and will maintain value of over time (like houses and cars).

The definition of debt is that you have borrowed something with the condition that it is to be paid back, usually with specific terms. The terms of a loan may include the term (time period for repaying the loan) and interest. Interest is usually defined as a percentage of the loan amount that the borrower will pay on top of repaying the balance or borrowed amount.

Interest is charged so that the lender is compensated for the opportunity costs of not having access to the money themselves and for taking on the risk of the loan.

There are different kinds of debt: secured, unsecured, revolving and mortgage. Interest is is something, usually money, borrowed by one party from another. Debt is used by many corporations and individuals to make large purchases that they could not afford under normal circumstances. A debt arrangement gives the borrowing party permission to borrow money under the condition that it is to be paid back at a later date, usually with interest.

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good debt and bad debt

Good Debt and Bad Debt: A Quick Guide to Wise Use of Borrowing for Financial Success

Debt isn’t necessarily terrible. Good debt helps you get ahead. Bad debt puts you in a hole. Understand the differences for better financial outcomes.

July 4, 2023
financial basics

Financial Basics: A Guide to the Habits and Strategies of Spending, Saving, and Investing for a Secure Future

Mastering the financial basics is doable by anyone at any age. Here is a simple guide. Steps to take at 20, 25, 45, or even 55 to get and stay on track to a secure future.

June 1, 2023
how to get out of debt

How to Get Out of Debt: 12 Ways to Reduce this Expense for a More Secure Future

Debt levels have climbed to an all time high. Reducing this financial burden is a very worthy goal. Not sure how to get out of debt? You have options. Use this article to get motivated and find a way to approach your debt that feels right for you and your priorities. There are quite a…

May 23, 2023

Average Retirement Debt: Older Americans Have More Debt than Ever Before!

One of the greatest threats to retirement today may not be saving too little, but owing too much. According to the Federal Reserve Bank, Boomers (Americans born between 1946 and 1964), are carrying ballooning amounts of debt into retirement.Will your debt take a big bite our of your retirement? For many people, that debt is…

December 10, 2020
What happens to your debt when you die

What Happens to Your Debt When You Die?

What happens to your debt when you die?  It’s possible that an individual can have so much debt after they die that it will wipe out the assets that they’d hoped to leave for their heirs. In some situations, family members may be on the hook for their deceased relative’s debt.However, this all depends on…

July 7, 2020

6 Ways to Have a Debt-Free Retirement

If you are a typical American approaching retirement, chances are you’re carrying some form of debt. In fact, the median debt per American household is $2,300, while the average debt stands at $5,700, according to a study by Lending Tree. But retiring with debt can be detrimental to retirement planning, says credit counselor Thomas Nitzsche,…

July 2, 2020
Paying Off Debt

Paying Off a Debt? First Celebrate then Do This…

Whether it is a credit card, car loan or the holy grail of all debts — your mortgage, paying off debt and eliminating monthly payments is a really big deal. When you pay off a debt, it is a huge opportunity to rethink your financial situation.  Your cashflow will have suddenly improved.  What are you…

July 24, 2019

Debt Free Retirement! 7 Reasons To Pay Off Every Penny Before You Retire

You’re 70 years old. You shuffle out to your mailbox on a crisp Monday morning and you are not at all surprised by what’s inside: junk mail and bills. “You’ve been pre-approved for this credit card.” — garbage “I’ll do great things for your city. Vote for me!” — garbage “It’s that time of month.…

May 17, 2018
rising interest rates

How to Prepare Your Retirement Plans for Rising Interest Rates

Interest rates impact our lives in a wide variety of ways – especially financial. Why Will Interest Rates Rise? Since 2008, interest rates have been at historic lows, below 1 percent. Traditionally, rates have been much much higher – ranging from 16.39 percent in 1981 to a low of 3.02 percent in 1993. The low…

January 5, 2017
credit score

Does Your Credit Score Matter in Retirement?

Whether you’re living the dream of a debt-free retirement or you’re still working towards paying off debt, there are some pretty compelling reasons to continue caring about your credit score after retirement. In a perfect world, everyone would enter retirement with a paid-off mortgage, zero debt, and a nest egg large enough to ensure they…

September 1, 2016
Eliminating debt

Expert Interview Series: Steph Halligan About Eliminating Debt While Saving For (or in Preparation of) Retirement

Do you want to eliminate debt and save for retirement? It’s not impossible. In today’s world, it can be easy to feel rushed, overwhelmed, and spread thin. But don’t let that stop you from meeting your goals. If you want to be debt free, it will require some discipline and sacrifice; but eventually, it will…

November 2, 2015
Retirement savings

Expert Interview with JoAnneh Nagler Of The Debt Free Spending Plan About Retirement Savings and Supporting In-debt Children During Retirement

“The principle of living debt-free is not about being good money-citizens for the sake of it. It’s not about getting a gold star. It’s about getting clarity with our money so that we can fund more of what we want, not less. I like to say, ‘It’s about creativity, not credit cards.’” This is a…

May 7, 2015

Expert Interview with J. Douglas Hoyes About Retirees Living Debt-Free

We asked J. Douglas Hoyes, bankruptcy trustee, founder of Hoyes, Michalos & Associates, and advisor for, how big of a problem debt was for individuals today. He said the answer really depended on your perception. While the average Canadian now owes $1.62 in debt for every after-tax dollar they earn (a number that keeps…

February 20, 2015
Money management

Expert Interview with Lauralynn Schueckler About Credit Counseling

Working with a credit counselor is something people of all ages can benefit from. These trained professionals help individuals reduce debt, save more, and reach financial goals. Lauralynn Schueckler of Advantage Credit Counseling Service understands that money worries are a common occurrence in individuals just starting out and in retirees, but she knows that credit…

December 26, 2014

How to Get Out of Debt? The Financial Gurus Answer

Retirement planning is a lot easier with the weight of debt off your shoulders. Some debt is almost unavoidable, but that doesn’t mean you can’t clear it away, and smooth your path forward. All it takes is a plan, and the stick-to-itiveness to see it through. If you’re trying to hone in on the best…

October 17, 2014

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Take financial wellness into your own hands and do it yourself retirement planning: easy, comprehensive, reliable.