Most credit card debt falls into this category, especially if you owe for items like clothes, toys and entertainment. Steer clear of a big debt load carrying high interest charges. Try to pay the bill off at the end of each month. Financial advisers suggest you aggressively pay down any debt whose interest rate runs 10 percent or more. Title loans and payday loans are examples of fringe banking, or very expensive debt, whereby you pay interest rates of 25 percent and higher to borrow money.
Credit can be a valuable financial tool, especially in an emergency.
If you have to face debt, make sure that you're looking at the good side. Copyright 2000 Janet Bigham Bernstel. In the uncertain economic climate of the nineties, keeping up with payments is getting difficult. Click and ask a question about this topic. Inc. All Rights Reserved.