The average American household debt is increasing. Some debt is good, but some debt is bad. Good debt includes borrowing for a home or college education. Good debt is often defined as debt that can help you generate additional income or increase your future net worth. Bad debt includes buying things you use that won’t generate money in the future, like a boat or a high priced car. Save up and buy these kinds of things with cash, not with debt. Set aside a certain amount of savings each month just for this purpose. Here are some other tips to help you control your debt. Always pay a bill when it’s due and don’t incur interest or late charges. Start paying off your most expensive debt first. For instance, if you’ve two credit cards and one has a higher interest rate, pay that one off first. Don’t fall into the monthly minimum payment trap. It will take many more years to pay it off. If you’re refinancing, just aim at reducing your interest rate and not consolidation of debt. Let us help you develop a debt management strategy as part of your overall investment plan. Give us a call today.