Debt: Good. Bad. Inefficient. Which do you have?
Debt optimization Grows the value of 'you'.
Make sure it's at the lowest total cost
Optimizing debt helps you pay debt down faster. In most cases, you want to be stress-free, debt-free. In some cases, taking on good debt makes sense because the "value of you" grows exponentially, but it needs to be properly assessed and structured.
[KEYS] Debt Optimization
Debt that is necessary and sustainable can be "good" debt. It is used to buy assets that grow in value or income, such as a home mortgage, education loans, business loans, and sometimes investment loans.
Inefficient debt is Good Debt that is not tax-efficient or is more expensive than it needs to be. Time to refinance, consolidate, or restructure.
Get rid of Bad Debt! It buys things you don't need in the first place. It is not sustainable. Bad Debt includes credit cards and store cards. It often includes car loans/leases and phone purchase plans. Bad Debt assets decline in value. It eats your income and puts your other assets at risk.
Getting out of Debt
Getting out of debt requires a plan. A step by step plan. Knowing whether Consolidation, Waterfall (sometimes called Avalanche), or Snowball is right for you depends on your circumstances and specific debt characteristics. There is no "one size fits all" when it comes to money.