Chief Financial Editor:
February 2009

—SOME DEBT IS GOOD!

 Borrowing for a home or college usually makes good sense.  Just make sure you don't borrow more than you can afford to pay back and shop around for the best rates.

—SOME DEBT IS BAD!

 Don't use a credit card to pay for things you consume quickly, such as meals and vacations.  If you can't afford to pay off your monthly bill in full in a month or two.  There's no faster way to fall into debt. instead put aside some cash each month for these items so you can pay the bill in full. If there is something you really want, but it's expensive , save for it over a period of weeks or months before charging it so you can pay the balance when it is due and avoid interest charges.

—PAY OFF YOUR HIGHEST-RATE DEBTS FIRST!

 The key to getting out of debt efficiently is to pay down the balance of credit cards that charge the most interest while paying at least the minimum due on all your other debts.  Once the high interest debt is paid down, tackle the next highest and so on.

Please e-mail me with any questions or concerns that
you might have regarding financial issues sdm2@bellsouth.net

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Arlinda Brawley

Financial Editor