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Financial and Lifestyle Resources for Vermont

VSECU Blog

In the VSECU Blog you'll find financial and lifestyle resources to help empower possibilities for your personal success.

Marina Haslam

Marina Haslam is the Technical Support Supervisor on the Information Technology team at VSECU. When Marina is not working, she enjoys playing video games, practicing yoga, and traveling.

By: Marina Haslam

February 9th, 2021

Good vs. Bad Debt: What's the Difference When Managing Debt?

Homebuying and Mortgages | Credit and Debt | Saving and Budgeting

Debt can be a complicated or sensitive topic, but it’s important to discuss because it’s crucial to our personal finances. Your credit score is impacted by the amount of debt you have, whether you are paying off your debt on time, your credit card balance(s), and more. Debt can also have you spending significant sums on interest alone.  According to financial data from Zillow, Forbes, and TransUnion, the average American will pay just under $900 a year in interest on their credit card debt.  However, not all debt is bad. Sometimes debt can help to improve your credit score, make a sound investment in your future, and more. Understanding the difference between good debt and bad debt can help you determine what debts to pay off first or avoid going into certain types of debt.

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