Distinguishing Whether You Have Good and Bad Debt

This post is all about understanding the difference between having good or bad debt.

Debt is something many people have to deal with, but it can be helpful or harmful depending on how it’s used. Good debt can be an investment in your future, while bad debt can hurt your financial future. 

Good debt can help you grow your wealth, like buying a home or going to college. Bad debt, on the other hand, is usually associated with short-term purchases or unnecessary expenses that come with high interest rates. 

 It’s important to think carefully before taking on debt and make sure it aligns with your financial goals. Remember, not all debt is created equal!

Debt can be a tricky thing to navigate. While some low-interest debt can be beneficial, too much of any kind of debt can quickly turn into a burden. Medical debt, for example, is an expense that doesn’t necessarily fall into the “good” or “bad” category. It’s often unpredictable and doesn’t have an interest rate. 

🎓 When it comes to student loans, it’s generally regarded as an investment in your future. Federal student loans tend to have lower interest rates, making them a smart choice. But it’s important to aim for a student loan payment that stays below 10% of your projected after-tax monthly income a year after graduating.

🏠 Buying a home is likely one of the biggest decisions you’ll make in your lifetime. Mortgages are a popular way to make that happen, but it’s crucial to know how much house you can realistically afford. Keep your mortgage payment to 36% of your income, and consider downsizing or moving to a lower-cost area if necessary.

🚗 For many people, owning a car is a necessity. But car loans can quickly add up, so it’s important to keep total auto costs, including your car loan payment, within 20% of your take-home pay. Loan terms should also be four years or fewer, preferably with a 20% down payment.

If you’re finding yourself overwhelmed by debt, don’t panic. There are options like refinancing and income-driven repayment plans that can help you get back on track. By being mindful of your debt and taking action when necessary, you can set yourself up for financial success.

Bad debt is any debt that is expensive and can hurt your financial situation. Things like high-interest rates or purchasing things that lose value can be examples of bad debt. But sometimes, bad debts start as good debts and can spiral out of control. Credit card debt is a prime example of this. 

💳 If you’re struggling with high-interest credit card debt, there are some things you can do. One option is the debt snowball method, where you pay off your smallest debts first. This can help you stay motivated and make progress on your debt. 

🛍️ Taking on personal loans for things like vacations or new clothes can also be a slippery slope. While personal loans can be a good option if you have a specific goal in mind, like consolidating debt, taking on debt for discretionary purchases can be expensive. If you’re facing an expensive personal loan, you may be able to refinance it to make it more manageable.

Identify your debts: Make a list of all the debts you owe, including the interest rates and minimum payments. Grab a pen and paper and write down all the debts you owe, from credit cards to personal loans.

Make a budget: Figure out how much money you have coming in and going out each month. Look for areas where you can cut back on spending to free up extra cash for debt payments.  See if there are any subscriptions or unnecessary purchases you can cancel to save money.

Choose a debt payoff method: There are several popular methods for paying off debt, including the snowball method (paying off the smallest debts first) and the avalanche method (paying off the debts with the highest interest rates first). Choose the method that works best for you. Some people prefer to start with the smallest debt to build momentum, while others focus on the highest interest rate to save money in the long run.

 Increase your payments: Try to pay more than the minimum payment on your debts each month. Even an extra $10 or $20 can make a big difference over time. Even an extra $20 a month can help you pay off your debt faster and save money on interest.

Remember, paying off debt takes time and effort, but it’s worth it in the end. Keep track of your progress and celebrate your milestones along the way!

📰 In the news:

Why it matters

Mortgage rates have declined for the fifth consecutive week, easing homebuyers’ borrowing costs just in time for the spring buying season. However, the lack of inventory on the market remains a significant housing challenge. Low supply continues to keep home prices elevated, and sellers aren’t motivated to list their properties, as more than 85% of homeowners with mortgages have locked-in rates below 5% and wouldn’t be able to buy a new home with the same or lower rate elsewhere.

By the numbers

The average rate on the 30-year fixed mortgage had a minor dip to 6.27% from 6.28% the week before, according to Freddie Mac. Rates have been sliding since early March, declining nearly half a point since March 2nd. Market inventory increased 15.3% on a year-to-year basis to 980,000 units towards the end of February, and increased from 850,000 units compared to prior year. However, this level of activity is still at a ‘historical low’. There’s currently a 2.6-month supply of homes; a robust market has around a 6-month supply.

The big picture

The drop in rates and cooling inflation help potential homebuyers, but the lack of inventory continues to be the most significant housing challenge. Since fewer homeowners are putting their houses on the market, there aren’t as many options for buyers. And let’s be real, both buyers and sellers are feelin’ pretty bummed about the real estate market, especially when it comes to mortgage rates. So, we can expect the number of homes sold to stay lower than last year for a few more months.

🧋 Taylor’s Toolkit

Before you pull the trigger on a purchase that’ll add to your debt, ask yourself if it’s gonna benefit you in the long run, or if it’s just a quick fix for something you can’t really afford. I always ask myself, “If I can’t buy two of these, do I really need it?”

Also, make sure you have an emergency fund for unexpected expenses so you don’t have to rely on credit cards.

Another tip I swear by is to keep your debt-to-credit ratio as low as possible. That way, lenders won’t see you as a risky borrower. And focus on paying off what you already owe instead of adding to your debt.

And last but not least, pay your bills on time – every single time. Trust me, it’ll save you a ton of stress in the long run.


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Priceless Tay is where ambition meets financial finesse, and where go-getters like you come to thrive. It’s the ultimate resource inspiring the savvy go-getter to achieve their goals with confidence.

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Distinguishing Whether You Have Good and Bad Debt

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The Best Gifts For All Types Of Girlfriends

The Best Gifts For All Types Of Girlfriends The Best Gifts For All Types Of Girlfriends Are you looking to get your girlfriend the perfect gift but are having some

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gift guide for Girlfriends / Holiday Gifts For Girlfriends

The Best Gifts For All Types Of Girlfriends

gift guide for Girlfriends / Holiday Gifts For Girlfriends
The Best Gifts For All Types Of Girlfriends

Are you looking to get your girlfriend the perfect gift but are having some trouble coming up with ideas?

Well, don’t worryᅳI’ve got you covered! We’re going to be exploring the world of girlfriend gifts today, and I have a ton of suggestions to share with you.

The best gifts for all types of girlfriends are listed here, regardless of her interests, be they tech-savvy, bookish, fitness-obsessed, or anything in between.

In this post, you will find the best gifts for all types of girlfriends.

Silk Pillowcase


If your girlfriend doesn’t have one of these silk pillowcases yet… She needs one! These pillowcases are good for your hair, skin, and sleep routine.

Jimmy Choo Perfume


If your girlfriend doesn’t like to splurge on nice things for herself – this is the perfect gift you could give her. This could be her new fav signature scent!

Half Gallon Water Bottle


If your girlfriend loves hitting the gym, these water bottles are a life changer! This water bottle even comes with unique time stamps to stay motivated and make sure she’s hitting her daily H20 intake.

Nylon Workout Set


This workout set is perfect for your girlfriend if she enjoys yoga or pilates! These sets are almost identical to the SKIMS set and come in various colors! Look no further; she will adore this set!

Exercise Band Set

I have a pair of these bands and the come in so handy at the gym or even for a home workout! They can be a great addition to any workout routine

Cute Gym Bag

Adorable Gym Bag: Nothing satisfies women more than having a unique bag for every occasion. There is a separate toiletries bag included with this cute workout bag!

DIY Casting Kit for Couples

As a token of your love, give your girlfriend this truly beautiful gift. This could be a really cute thing to do on a date night! 

Fondue Pot Set

This is a perfect addition to a movie night! Go out to the store, pick up some cheese chocolate and your girlfriend’s favorite dippers, and watch her face light up! You can also use this set tons of times!

Tile Mate

If your girlfriend is always on the go this is a perfect gift for her to keep track of all of her stuff! These things come in super handly when trying to find your key or purse! 

Toaster Lamp

This is one of the cutest little lamps ever! It can be a perfect addition to her bookshelf, home office, or nightstand. It is also battery-operated so it’s super portable to move anywhere! 

Natural Bath Bomb Set

Create a relaxing vibe for your girlfriend with these bath bombs! These are perfect for a little spa moment and they have aromatherapy benefits.

Engraved Cutting Board

An engraved cutting board would be a lovely addition to your girlfriend’s kitchen if she enjoys cooking at home. Personalize this cutting board by adding your initials or an Anniversary! These are ideal for charcuterie boards!! 

Smiley Spatula

I mean, do I need to explain this one? This Spatula could be the cutest new addition to your girlfriend’s kitchen. 

Cute Makeup Bag

If your girlfriend needs an upgrade to her makeup bag, this is the perfect one. It’s perfect for size to take on the go.

Crystal Photo

This is such a priceless gift to give to someone you love! Pick your favorite photo and get it delivered inside a unique crystal heart. 

Personalized Canvas

An incredibly original present for your girlfriend! Get your most cherished photo made and place it somewhere meaningful to preserve your best memories.

Vanity Makeup Mirror

Level up your girlfriend’s makeup routine with this nifty mirror! Perfect for doing makeup while in places where there is poor lighting!

Organic Lip Balm Package

I purchased this set for myself and strongly suggest it to anyone who is always looking for hydrated lips. There are six in the package, so it’s perfect for keeping one in your work bag, car, or beauty bag!

Natural Lip Scrub

This is the perfect gift to pair with the lip balm! It’s vegan and suitable for all skin types!

Movie Night Kit

If you and your girlfriend are movie people, she will love this movie night kit! It comes with a variety of popcorn packs and seasonings! Your next movie night would be epic! 

Fuzzy House Slippers

The cold season is approaching and if your girlfriend doesnt already have a pair of house slippers she definitely needs a pair! I wear mind every day around the house and they are so comfy!

Portable Vehicle Jump Starter with Air Compressor

Everyone needs one of these in their car! This thing has come in handly so many times for me! you can never be too prepared when on the road

Essential Oil Set

No one can have to many essential oils and thats why this set is perfect! IT comes with 20 different sects and is perfect for a at home spa day! They also work great with a diffuser!

Essential Oil Car Diffuser

These are the cutest lil car air fresheners ever! This could pair as a perfect gift with the essential oil pack above!

Personalized Puzzle

This can be such a cute date-night idea! Pick a picture you love and get it put on a puzzle for you and your girlfriend to complete together!

This post was all about the best gifts for your girlfriend.

If you liked this post, check out our other gift guides!

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