Is having some debt a bad thing?

I am 26/almost 27 years old. newly single after 11 years.... paying rent and bills all byself for the first time. Since the split, I have accurred $4,000 debt. I figure it'll either take me a good year to pay off or I can just not really care about it being there and make min pymts and just pay more when I can. I pay a low 8% interest. I never debt from school which I know a lot people my age still have. Is this ok or is it really bad?
I am smartening up and NOT adding to my debt anymore!

No, it is hard to build a good credit history if you don't incur some debt. But in your situation, $4,000 sounds like a lot. If you will take a year to pay it off, then you should go ahead and do so. Be careful not to make ANY late payments, don't use your charge card anymore (or you will be going backwards), and always make more than the minimum payment. It is a bad idea to carry credit card debt if you can avoid it. Good luck.

Having some debt, and paying it off is a good thing, as you are considered a worthwhile credit risk. Not paying it off, involves ruining your future.

Having debt is exactly the same as being a slave or having a master

I disagree with car payments being a way of life... car payments are why most people are BROKE.

http://www.daveramsey.com/etc/lms/drive_free/

I would avoid any debt you can not pay off in one month... avoid paying interest...

If you pay the debt off 'a bit at a time', paying only about $10 a week, or $40 a month, like the minimum payment, it will take 13 years and 8 months to pay off. It will cost you an extra $2654 in interest. If you pay it off as fast as you can, you get to keep that $2654 in your pocket.

The reason people say debt is bad is because debts mean you have to pay extra back, and that interest hamstrings you. The longer you take to pay, the more crippled you are by interest. 8% is very low, but if your interest rate was to rise sharply, you could be in big trouble. In the last few decades, people have got into a mindset that instant gratification is good, and it's not. It isn't healthy to get what you want when you want it, all of the time. Debt has become a part of this. People depend on debt to live what they consider to be a 'rich' lifestyle, to support their frail egos. If they just banked their money and invested it, instead of wasting it on consumer crap and then borrowing more to buy more stuff they didn't need, they would actually have a chance to BE wealthy.

Pay the debt off as fast as you can. Pay double the minimum payments. Don't sabotage your financial future by wasting money. A little tightening of the budget now will be financial freedom later on.

I am a year older than you, and I bought my own home at your age. I'm paying more than 8% on my homeloan, and that's considerably more than you have borrowed. I'm making double payments right now so we can pay it off in 5 years. You just have to be motivated.

You should get your employer to deposit at least 10% of your income into another bank account -- a special savings account. Use this money to clear your debt. When the debt is clear, keep saving the money until you have enough to invest. This should probably only take 2 years at the most.

If you have any savings at all, pay the debt off with them. It's no use having savings earning 3% interest (which is taxable income!) when you're incurring debt interest of 8%.

This is just useless debt. Did you buy anything of increasing value with that debt, like a home? Not a car, because they depreciate, and are worth less over time. The only justifiable debt is debt used to buy growth assets, like properties. If you're using debt to purchase disposable consumer items, like clothing, food, and entertainment, you're sabotaging yourself.

Pay the debt off. Then save what you'd be paying on minimum repayments. You'll be far better off.

not really its good if you catch early and stop because once you have dug the hole its a long hard climb out!

Having some debt is not a bad thing - don't get in over your head! Some debt can help you establish a credit rating. If you pay off the debt timely, and never get a late payment, this will boost your credit capacity. When you start looking to purchase a house, how you responsibly handled this level of debt will show you are a good credit risk.
Good luck - pay it back on time!

You'll want to stay on top of making these payments. I would recommend paying more then the minimal about due. Any debt is bad debt. Just think if you where debt free how much extra money you would have a month to put into savings or investments. You have to think of the big picture here of being financial free. I would suggest a book by Dave Ramsey called " The complete money makeover". You can rent it at the library or purchase it for around $20-$25 bucks. My new motto is like Dave Ramsey says is "live like no one else so one day you can live like no one else".

Pay as much as you can of the debt off. You should focus on getting back in the black. Debt is bad, period. Once you get that monkey off your back, focus on saving your money. Put $100 a month in the bank, $100 in a safe or cashbox, and the rest for bills, food, etc. Even if it means getting your food from the food bank, getting cheap soap and toilet paper, no new clothes, walking to work, etc.

pay it off..then use a little each moth. You need an open and at least slightly used credit line to keep a credit score and improve it.

well a mortgage and car loans are a way of life, having silly credit card debt is. If you end up getting something 0percent for 24months that is not bad.

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