Debt Management / Financial Literacy
Debt can often be portrayed as having negative connotations. However, money that is borrowed can be used for a wide variety of purchases. Some of these purchase choices represent investments and they have been made in order to realize a return on the investment. If the return is deemed adequate enough to justify the cost of the debt, then this can be considered to be good debt. The use of debt for this purpose is a risk versus reward consideration.
Other purchase choices relate to non-essential purchases. In these cases one might argue that there is a potential return but it is likely a non-monetary one. The debt still needs to be repaid with its corresponding interest cost. Purchases of this sort can be the source of expensive debt. For instance, credit card debt is very expensive.
I have several financial advisors that I trust and I am pleased to recommend any of them to provide some understanding of cash flow management and considerations for managing both savings and debt.