Get to know your debt
Find out if the dollars owed on your balance sheet are good or bad.
GOOD DEBT
Mortgage
What to do with it: Keep it. But don't pay more than 30 percent of your family income toward it.
Student Loan
What to do with it: Choose wisely. Look for federal loans, which have flexible repayment options and fixed rates.
BAD DEBT
Credit Card
What to do with it: Dump it. If you can't pay off your cards in full each month, see a credit counselor (go to nfcc.org).
Car Loan
What to do with it: Pay it off ASAP. If you have to borrow for more than four years to get the car, you can't afford it.
Payday Loan
What to do with it: Avoid it. These loans carry triple-digit interest rates, so stay away from them.
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