A Guide to Debt: Good vs. Bad and Tips to Better Manage It

Debt might help or hurt your long-term finances, so be mindful of its use.

couple reviewing their finances
(Image credit: Getty)

In 2022, the average American owed almost $102,000 and paid more than 9.5% of their disposable income on debt. That same year, American households owed approximately $17 trillion in total debt, up $2.75 trillion from 2019.

Let's face it: America has a debt problem. I believe that bad debt habits persist due to our country's financial illiteracy. This guide is aimed to help you understand the differences between good and bad debt and give you basic techniques and recommendations for managing and paying off your debt.   

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The information provided here is not investment, tax or financial advice. You should consult with a licensed professional for advice concerning your specific situation.

Chad Rixse
Director of Financial Planning | Wealth Advisor | Chief Compliance Officer

Chad Rixse, CRPS®, is the Director of Financial Planning and a Wealth Advisor at Forefront, a privately-owned financial services firm.