Controlling Your Personal Debt
Part of CNNMoney's "Money 101" Series
Learn how to control your personal debt and accomplish your financial goals, by making your personal debt work for you. Here are the top things to know:
1. Americans are loaded with credit card debt.
2. Some debt is good.
3. Some debt is bad.
4. Get a handle on your spending.
5. Pay off your highest-rate debts first.
6. Don't fall into the minimum trap.
7. Watch where you borrow.
8. Expect the unexpected.
9. Don't be so quick to pay down your mortgage.
10. Get help as soon as you need it.
For the full scoop on these helpful hints, CLICK HERE.
Here are some more articles from CNN's Money 101 to help you control your personal debt:
Good Debt vs. Bad Debt – Sometimes it makes sense to borrow – a lot of times it doesn't. It's almost impossible to live debt-free; most of us can't pay cash for our homes or our children's college educations. But too many of us let debt get out of hand.
Examples of Good Personal Debt – Debt is not always a bad thing. In fact, there are instances where the leveraging power of a loan actually helps put you in a better overall financial position. Home, school and your chariot qualify as good types of personal debt to have.
How to Avoid Borrowing to Pay Debts – Besides life's big-ticket items – home, car and college – you may be tempted to borrow money to pay for an assortment of other expenses such as furniture, appliances and home remodeling. A home equity loan or line of credit is smart in some instances to handle your personal debt.
Personal Debt Management Strategies – Outside of fixed monthly bills such as your housing or car payment, you probably don't have a precise idea of how you spend most of your money. Simple steps put you – not your bills – in charge.
Check Your Credit Reports and Scores – Find out what information lenders have on your personal debt. While you're cleaning up your debt, order copies of your credit reports, which are free, and your credit scores, which cost about $15, since the information contained in them will directly affect the interest rates you're offered on credit cards, mortgages and other loans.
