Debt is neither good nor bad. Some people classify all debt as bad, but that isn't necessarily fair.

Some debt cannot be avoided and is easier to manage, while other debts may be crippling and harder to pay off.

One type of debt doesn't negatively impact your score directly, but if you're carrying a large amount of debt, that may impact your score due to your utilization ratio. 

Some debt is considered to be "good" if it is a low-interest debt.

For example, a mortgage and car loan may have a low-interest rate as compared to a credit card.

These types of debts are very normal for most families to have. Ideally, it's best to…Read More

Sometimes, it's easy to be seduced by the illusion of “free” money. Plenty of people are carefree about their credit card spending, thereby piling up more debt than they can carry.

On top of this, in the last few years, with inflation and interest rates rising, many people are simply stuck in a loop of persistent debt - where they've paid more in fees, interest and charges than they've paid back to their credit card balance.

Of course, this makes it difficult, if not impossible to get ahead. 

Credit card debt makes up a significant portion of household debt in the United States, with the average American credit card debt sitting at $6,501.

On top of that, Americans collectively owe over $1.13 trillion in credit card debt, increasing by over $50 billion in the last quarter of 2023. 

There is no doubt that credit card debt makes up a huge chunk of financial liability which most people bear. Having a grip on your credit card debt is a major milestone that you have to scale on your way to financial independence…Read More

I pay bills on time to protect my credit score.

My spending aligns perfectly with my values.

I research major purchases thoroughly…Continue Reading