|Having low debt is a key principle for success.
There is good debt and bad debt and you need to know the difference.
Good debt makes you money. And bad debt is debt that spirals you downward towards bankruptcy.
Borrowing for a house that you can afford is good debt.
Paying off higher interest rate credit cards with lower interest rate credit cards is good debt.
Paying the minimum amount on a credit card is bad debt management. That jacket that cost you $1000 will actually cost much more after you add the interest you pay on it.
Borrowing to gamble (day trading) is very bad debt.
Borrowing to keep a losing business afloat is bad debt.
Borrowing at high rates is bad debt.
Borrowing from a loan shark is very bad debt.