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Thursday, June 10, 2010

Greetings Thrifty Friends,

In the last issue of Thrifty Tips we talked about good debt.
But just like there is good debt, there are some bad debts
too. When you use debt to finance things that can be consumed,
you aren't accumulating good debt. This is the kind of debt
that creates an unhealthy financial situation. Credit card
debt is often considered bad debt because of the nature of
items that credit cards are used to purchase.

Please scroll down for more.

Keep pinchin' those pennies,
Penny

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*****

TODAY'S THRIFTY TIP: Bad Debt

You should never accumulate debt to purchase everyday items
like clothes or food. If you use a credit card for these
types of purchases, you should pay the balance in full each
month.

Even debt used to finance a vacation is bad debt. Even
though it might help you feel better and be more productive
once you return, a vacation does not appreciate in value.
Don't use debt to pay for a vacation and especially don't
use it to pay for a vacation you can't afford.


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