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There Really is Such a Thing as Good Debt

While "good debt" may sound like an oxymoron, in 60 seconds we'll tell you why there really is such a thing and whether you should pay it off.
By TRACY BYRNES Dec 03, 2017 | 05:30 PM EST

While the term "good debt" sounds like an oxymoron, there really is such a thing.

It's basically any debt you have that has a low interest rate and could possible get you a tax deduction.

So some good debt is well...good...to have.

Good debt is anything that leads to a higher payoff later, such as a mortgage on a house that appreciates in value or a student loan that translates into a degree with higher future earnings

Granted, paying off all your debt is a good rule of thumb but if the interest rate on your mortgage is historically low maybe instead of rushing to pay that off, consider putting any extra money you have into your retirement accounts such as 401(k)s and IRAs - or even a 529 college savings accounts for the kids.

Listen in for more tips in 60 seconds.

 

Watch More 60 Second Tips on TheStreet:

  • Drowning in Debt? Here's How to Get Above Water
  • How to Re-Enter the Workforce as a Retiree
  • Navigating Financial Aid
  • Questions to Ask Before Marriage
  • Why Your Dream Job Might Not Be Advertised Online
  • Here's How You Can Help Your Toddler Retire a Millionaire
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TAGS: Debt Management | Investing | Video | Credit Cards | Financial Planning | Personal Finance | Consumer Credit | Tax Tips | Going to College | Buying a Home | Money Basics

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It's so nice to be in love and really get to know someone. But do you really know that person? Do you know your sweetie's credit score? Do you have your own checking account? Give me 60 seconds and I'll tell you why you should!

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