Cash Flow Management

---

​Good Debt vs. Bad Debt

“Debt” tends to call to mind a negative connotation. But, when used strategically, certain kinds can serve as useful financial tools, affording you access to more liquidity and potential growth down the road. Before setting out to pay your debt off as quickly as possible, consider the various factors at play. You may find that the long-term advantages of holding certain types of debt can outweigh the benefits of paying it off sooner, so be sure to discuss the benefits and considerations with a knowledgeable financial professional.

​Next steps:

• Understand what interest rates and tax advantages are associated with each type of debt you own.
• Identify sources of liquidity for emergencies, large purchases or investment opportunities.
• Determine if there are opportunities that might be more constructive than paying down debt, such as maximizing your contributions to retirement accounts.
• Ask yourself how comfortable you are about carrying some debt.

52% of Americans are spending more than they earn,
out of which 21% regularly have monthly expenses in excess of their income,
only 13.5 percent adjust their spending the following
​ month to get their
finances back on track.*

​*Source: TheCreditExaminer.com