Debt isn’t always bad.
Many people have taken out loans that have enabled them to start-up a business or make an important investment however, when you're taking on debt mindlessly and letting it eat up the majority of your income you're setting yourself up for failure.
Student loans, mortgages and car loans are the major forms of debt that are usually necessary and can even help you achieve your goals but, even these have to be managed exceptionally well to ensure you actually benefit at the end of the day. Making minimum payments on your mortgage or, worse yet, missing payments may send you into the dreaded debt spiral. It’s important to put a plan into place to pay off your mortgage and other debt off as fast as possible. High interest debt such as that found with credit card and payday loans is the most dangerous form of debt and should be avoided at all costs.
If you're struggling to make end meet taking out loans will never do more than worsen your situation – which is why having an emergency fund is absolutely critical to ensuring you can keep your head above water when things don’t go as planned. Ridding yourself of debt will enable you to free up a large portion of your income that you can then allocate to savings and investments.