Most people carry some kind of debt—credit cards, car loans, student loans, maybe even a mortgage. It’s a normal part of life for many families. But here’s the truth: not all debt is created equal. Some debt can work in your favor. This is what’s known as “good debt.” It helps you build something for your future. Think student loans that lead to a better-paying career. A mortgage on a home that gains value. Or a business loan that opens the door to greater income.
But then there’s “bad debt.” This is the kind that pulls you down—like high-interest credit cards, payday loans, or debt taken on to fund a lifestyle that isn’t sustainable. It doesn’t build wealth. It builds stress. So how do you tell the difference? Start by asking yourself:
“Is this helping me grow—or just helping me spend?”
Even good debt can become a burden if you don’t manage it with intention. Too much debt—of any kind—without a plan to pay it off can quickly become overwhelming.
Here’s a smart first step:
Download a free debt calculator. Enter what you owe, your interest rates, and monthly payments. It will help you create a plan to pay off the most damaging debt first.
Understanding your debt and take back control. The more clarity you have, the more confident your decisions become. And that’s how you start making your money work for you—not against you.
For more real-world financial tips, tune in to Your Money Minute with Candy Valentino every Thursday on Cincy Lifestyle at 10am.
DISCLAIMER: Your Money Minute is furnished by Bandit Productions
