Money Minute – The Difference Between Good and Bad Debt

On this week’s Money Minute feature
sponsored by Navy Federal Credit Union personal finance expert Jeanette Mack
tells us a difference between good and bad debt when preparing for a mission in
the military the best way to start is with the team briefing that way everyone
is on the same page and the mission is on track for success it’s no different when it comes to your
kids and their finances one of the biggest financial issues they will deal
with in their lifetime is debt both good and bad according to NerdWallet com the average
american household is more than a hundred and twenty-nine thousand dollars
in debt that’s a lot of money so you can see why managing get is an important
lesson to teach your children generally speaking good debt is associated with an
asset that has the potential to hold or increase its value for example home
mortgages student loans and yes even credit cards can be considered good debt
in order to make those types of loans work for you you have to make sure you
don’t bite off more than you can chew which a good lender will help you avoid
bad that includes borrowing from a 401k retirement account heavily using higher
interest rate credit cards and taking out payday loans these days there are
more financial players than ever and some will be tempting your kids or your
younger enlisted to rack up debt it’s imperative to help them learn the
difference between good and bad debt and how to get the kind that will help them
to be more financially successful in the long run thanks Jeanette we’ll see you next week

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