Nobody likes being in debt. Owing money can cause stress and financial strain. In fact, new survey results show 77 percent of Americans say they believe being in debt has held them back. But while it can definitely have a negative effect on your life, not all debt is the same and, in some ways, debt can be good. That’s why the same survey found almost an equal amount of respondents who said they think having debt is normal. Additionally, 62 percent of participants even believe it’s necessary to get ahead financially. So, what are they talking about? Well, a good example of this is the difference between credit-card debt and having a mortgage. Credit-card debt is the most common type of debt. It’s also the most stressful and regretted. Mortgages, on the other hand, are viewed as smart debt – even if they still rank high for stress. The reason, of course, is that, as you pay down your mortgage debt, you own a larger percentage of your home’s value – and potential profit when you sell. When you pay down your credit card, you get nothing but the stuff you bought last year and no longer want. (source)
