Not all debt is bad

The average American household credit card debt in 2012 is estimated at $15,590. Most credit cards charge a hefty interest rate. Controlling your personal finance is the best way to get out of debt and manage your money wisely.

Not all debt is bad. Home mortgages and student loans are considered good debt. Home mortgage not only allow you to buy your own shelter while giving you a tax break on interest you pay on your mortgage. Additionally, many localities allow a tax break on property taxes you pay on your local and state income tax returns. Student loans on the other hand give you an opportunity to better yourself and interest you pay on your student loan may be tax deductible. Make sure to borrow only the amounts you can afford and shop around for better rates before borrowing. Then there is bad debt too. If you are charging your meals and your vacation to your credit card, this may be a bad habit as well as a bad debt. You should plan a monthly budget including your meals and stick to it without using your credit card to pay for your meals. Same goes with your vacation.