The unfortunate truth is that debt can quickly start to run and even ruin a person's life. If you are in BID debt, you can work to get out. If you have credit card debt, it is important to do all you can to pay more than the minimum balance. You will pay the card off sooner and pay less money back.

If you earn any extra money or receive any money that you don't usually have, try to use that money to put extra down on some of your high interest bills.

Good debt, such as a home loan, isn't really that harmful. In fact, they help to maintain a higher cash flow. Credit Card debt, however, can ruin someone's financial picture.

OhioGuy,

You are correct in saying that some debt such as a mortgage is not bad. People usually find themselves in trouble with credit cards.

Okay I'm a little lost as to how a mortgage can help to increase cash flow...I would assume that the monthly payments would be cash outflows and not inflows...please elaborate on your point.

true, but you may need those credit cards to begin with, in order to establish a credit score.

you can do that just as effectively by only buying a pack of gum with your card and paying it off every month, larger purchases don't help your credit score when it comes to credit cards.