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Subject:  Re: First CC debt, then what? Date:  3/23/2007  2:55 PM
Author:  joelcorley Number:  250494 of 312992


You wrote, It's been really great seeing everyone's responses here, and how different everyone's views are on what are "good" and "bad" debts to them (or at least "better" and "worse" debts).

Something everyone should bear in mind is that there's no such thing as "good" debt or "bad" debt. Debt is simply measured in terms of cost. What does it cost you to have that debt.

The less a debt costs, the less "bad" a debt is. Whether or not it's worth doing something else vs. paying down the debt depends on what risks you're taking or what opportunities you might be missing by paying off the debt.

But any time you defer paying off debt, remember that it will usually impact all future spending. The amount may not seem like much; but with compounding of interest over time, it can make a substantial difference in how well you live in your later years. Whether or not that cost is worthwhile typically boils down to a judgment call we all have to make from time to time.

- Joel
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