A mortgage is what my SO calls "good debt". Reasonable interest on an appreciating asset. Car notes, on the other hand, may or may not be "bad debt" as the asse

A mortgage is what my SO calls "good debt". Reasonable interest on an appreciating asset. Car notes, on the other hand, may or may not be "bad debt" as the asset depreciates immediately and the interest might be high. Credit card debt is most certainly "bad debt". If you can't pay the card off at the end of the month, then you can't afford whatever it is you actually bought. Rid yourself of "bad" or "marginally bad" debt immediately, manage the "good" debt, then save (rainy day fund, 401K, IRA, speculation). You're doing well if you get to the speculation part.