Understanding Good Debt and Bad Debt.

Not all debt is bad, in fact debt can be valuable if handled properly. Credit lines and loans can help individuals build credit and get ahead in life.

Debt can work for you, if you work out your debt.

Your debt payment history will determine your credibility to lenders and if you have been responsible, you will qualify for even more!
But what debt agreements are good and what are bad?
Generally, any debt that has a low interest rate is good debt. Any debt that has a high interest rate is considered bad debt.

Debt that creates opportunity or growth is good debt!
For example: a student loan would be considered a good debt.  Some would even suggest a student loan with a high interest rate, though not ideal, is useful debt. The purpose of student loans is to become educated and achieve job opportunities.  A student loan represents a positive goal that will bring an individual financial gain.

A store credit card, even with a low interest rate is not necessarily good debt. Though it would be considered a good deal on a credit card. A department store credit card can help you establish credit. However, the purpose of the card, to get clothes or things, does not carry the same positivity as say a student loan.
The best advice we can give you when it comes to "bad debt" is to pay it off. In other words, picture this, John Doe has two credit cards. One has a high interest rate, one has a lower interest rate.  Paying off the high interest rate credit card is smart and will help him get rid of bad debt.

Find out about your specific debt and credit history. ICC can evaluate your credit report and show you what is good debt, what is bad debt and how to boost your credit score.

Innovative Credit Consultants offers everyone a chance to receive a free credit report analysis, a free credit repair consults and a free customary credit repair plan, visit www.icreditinc.com