Not all debt is the same. In fact, many experts break debt into two categories: good and bad.
Something like a fixed-rate mortgage generally counts as “good” debt. That’s because it usually comes with a (relatively) low interest rate, and it pays for something that may grow your wealth over time.
Bad debt, however, usually has high or variable interest rates, and is generally not structured to grow your wealth. Think of something like credit card debt, which can have interest rates north of 20%.
It’s important to get rid of bad debt quickly; if you don’t, high interest rates could leave you paying significantly more than you borrowed in the first place. Those same high interest rates can make…