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Credit Cards: What You Don't Know Can Hurt You
Good
Debt vs. Bad Debt
Credit Card Payoff Calculator |
"Good"
Debt: Borrowing, whether through a loan or credit
card purchase, for something you need (as opposed to want)
but is expensive enough that it would wipe out your reserves
to buy. It could also be for investments like education or
buying a home.
"Bad" Debt: Borrowing
for short-term consumables (groceries, clothes, etc.) and/or
things you really can't afford to pay back.
Rule of
Thumb: Match the
"life" of the thing you buy with the "life" of the debt.
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