Conventional wisdom tells us that getting out of debt is smart. And while generally that might be true, we're here to explain how that approach may not be the best decision for you! Oftentimes keeping low-interest debt around while you're able to invest and maximize your returns elsewhere will easily make the most sense when you're looking at the numbers. In this episode we cover the characteristics of good debt and bad debt, and then we talk through some helpful pointers on how to manage your current debt.

Remember this one thing: somewhere around 7% is the magic number that separates low interest debt from high interest debt. That's the interest rate that acts as a divider in our current market. Anything higher than that you'll want to pay off sooner than later, and anything lower than that, there is a good chance you can take those extra payments and invest to make a big enough return to make it worthwhile. Listen to the entire episode to hear us break it down because it's a very nuanced topic!

At the beginning of this episode we each cracked open and enjoyed a beer called Infusion A - Coffee Porter by Hoppin' Frog Brewery, a peanut buttery porter which you can learn all about on Untappd. If you enjoyed this episode, be sure to subscribe and review us in Apple Podcasts, Castbox, or wherever you get your podcasts!

For specific links and additional information about this episode, head over to our site: HowToMoney.com . Best friends out!

 Learn more about your ad-choices at https://www.iheartpodcastnetwork.com

Conventional wisdom tells us that getting out of debt is smart. And while generally that might be true, we're here to explain how that approach may not be the best decision for you! Oftentimes keeping low-interest debt around while you're able to invest and maximize your returns elsewhere will easily make the most sense when you're looking at the numbers. In this episode we cover the characteristics of good debt and bad debt, and then we talk through some helpful pointers on how to manage your current debt.Remember this one thing: somewhere around 7% is the magic number that separates low interest debt from high interest debt. That's the interest rate that acts as a divider in our current market. Anything higher than that you'll want to pay off sooner than later, and anything lower than that, there is a good chance you can take those extra payments and invest to make a big enough return to make it worthwhile. Listen to the entire episode to hear us break it down because it's a very nuanced topic!At the beginning of this episode we each cracked open and enjoyed a beer called Infusion A - Coffee Porter by Hoppin' Frog Brewery, a peanut buttery porter which you can learn all about on Untappd. If you enjoyed this episode, be sure to subscribe and review us in Apple Podcasts, Castbox, or wherever you get your podcasts!For specific links and additional information about this episode, head over to our site: <a href="https://www.howtomoney.com/">HowToMoney.com</a> . Best friends out! Learn more about your ad-choices at <a href="https://www.iheartpodcastnetwork.com">https://www.iheartpodcastnetwork.com</a>

Best friends Joel and Matt are the co-hosts of How to Money which is all about providing the knowledge & tools that normal folks need to thrive in areas like debt payoff, DIY investing, and crucial money tricks that will provide continuous help along your journey. We believe that access to unbiased and jargon-free personal finance guidance is more necessary than ever before. When you handle your money in a purposeful, thoughtful way that works for your lifestyle, you can really start living a rich life.

How to Money

Good Debt vs Bad Debt #022

https://api.omny.fm/orgs/e73c998e-6e60-432f-8610-ae210140c5b1/clips/b15b58ab-d695-4655-93c7-ae3200446962/transcript

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