Good Debt/ Bad Debt Continued

So... What is bad debt. A debt becomes bad when we are unable to or choose not to pay the whole amount owed when the statement arrives and continue to add to the balance with more charges. The most obvious culprit being CREDIT CARD DEBT.

I've heard it said, "We buy things we don't need with money we don't have to impress people we don't like".

There is nothing more satisfying than saving for something, buying it and taking it home knowing that you don't owe a dime for it.

When we buy something with credit cards and don't pay the WHOLE balance when it comes due we create debt that will ultimately not go away.

This is where the trouble starts. Then we buy more thus adding to the balance. The credit card companies are in business to make money and lots of it. So in reality they prefer that you only pay the minimum balance which in some cases doesn't even cover the monthly expenses charged to the account. Some credit cards have very high over limit, late and other charges associated with them.

Now when we get into trouble with multiple credit card accounts the burden becomes overwhelming.

Our personal financial plan must include the steps it takes to rid ourselves of this type of debt.