How to manage debt

The ability to properly manage debt is an essential part of personal finance and one that you should have a good handle on regardless of your financial goals. Improperly managing debt can be devastating, leading to a life of financial troubles, and a hole that can be almost impossible to climb out of. At the same time, smart use of debt is one of a savvy investor’s best tools to grow their wealth.

Let’s dive into the basics of debt management, and take a look at some examples of both good and bad uses of debt.

Key Takeaways

  • All debt is not created equal
  • You should prioritize paying off high interest debt first
  • A mortgage or a HELOC is often the cheapest form of debt available
  • Using leverage can help grow your portfolio when you invest smartly