When someone considers the issue of debt and finances they have to ask themselves, is all debt bad? I would have to answer that question with a no, not necessarily. A big part of the answer to this question lies in what exactly the debt is and the plan you have to repay it. For example, a bad debt could be considered buying some fancy new car when you are barely able to put food on your plate. However if you have a good job and are easily taking care of your situation financially, buying a fancy car could be totally within your reach and not be considered foolish. Another issue is that of a house. It is very rare that someone will be able to just walk into a situation and but a house with cash. So a mortgage is set up so that someone can purchase a house, even if it takes 30 years for them to pay the money back. This kind of debt, as long as the monthly payments are being met, can be considered a good debt because a house is a good investment and then you have something to show in thirty years. The alternative is renting and then after this period of time, you still have nothing to show. But it is always smart to do what you can to ensure you don’t have to turn to debt consolidation, simple because if you have to do this, it shows you already have lost money on interest charges and are fed up with it.