Unsecured debt is insidious � it creeps up on a lot of people, a little here, and a little there. Human nature being what it is, we tell ourselves we can �handle it� and we �know what we�re doing.� But how much debt is too much to handle?

Facing Facts About Debt

Great article. Robert Kiyosaki has some great material on understanding debt and telling assets apart from liabilities. Shopping and other spending may work great short term to relieve stress and make one feel better, but it is usually short term pleasure in exchange for long term pain. Another common expenditure I hear about is buying a house. Somehow people consider it a liability, even though it is costing them money EVERY MONTH - mortgate, taxes, insurance, repairs, upgrades, etc...

People talk about good debt and bad debt, and how a home mortgage and student loans are 'good debt'. Personally, i am not so sure about my student loans being 'good', but i loved getting an education and would probably pick the same path to financing it again.

For my home, I LOVE having a mortgage, in the sense that there's no way I could have bought this place outright. I love owning my own property and making all the decisions about how i use it, and having a safe, sound, beloved place to live. I love not paying rent. I love not asking permission of anyone to plan how i decorate, garden, landscape, etc.

The associated fees of taxes, interest and title whatnots are the unpleasant elements, but i guess they are the price of doing business. I try not to fret too much over it. If I had a windfall of money I'd spend the $20k to buy the place outright and save myself money on the 30 years of interest i bought myself.