Understanding Debt

Credit card debt, student loans, car payments and other forms of debt are daily stressors for millions of Americans because debt can start to chisel away at your savings and financial outlook.

Of course, not all debt is created equal. There are forms of “good debt,” such as student loans, that help you build credit and achieve your career goals. Student loans typically have lower interest rates than “bad debt,” which includes credit card debt.

The first step toward financial freedom is getting out of debt as soon as possible so you can spend your hard-earned money on something other than interest. GOBankingRates has hundreds of articles on preventing, reducing and eliminating debt so you can get back to your normal spending routine and stop worrying about collections. The sooner you pay off your debt, the sooner you can reach your other financial goals, like buying a house.