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Article: The Good, the Bad, and the Downright Ugly.(debt management)(Brief Article)
- Article from:
- USA TODAY
- Article date:
- August 1, 2000
CopyrightCOPYRIGHT 2000 Society for the Advancement of Education. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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Most people carry debt. From a money management standpoint, that is not necessarily bad. Sometimes, debt is good. Sometimes, it is downright ugly. The key is to carry the right kind of debt, and not too much of it.
According to the Financial Planning Association, Denver, Colo., most certified financial planners recommend that no more than 10-15% of a person's take-home pay go to nonmortgage debt. That is debt paid to student, car, and/or personal loans; credit cards; etc. Just as important is carrying the right kind of debt.
Good debt generally is debt that can provide a long-term financial payoff. Educational loans--either for your children or perhaps ...