There are two kinds of debt, good debt and bad debt. Good debt is debt that gives you a financial advantage; tax benefits, better cash flow and the ability to take advantage of opportunity. Bad debt is debt that costs you opportunity, causes stressful cash flow issues and cripples you financially. In this episode we talk about how to payoff bad debt and how to use good debt to your advantage.
4:19 How to tell if a debt is good or bad
12:38 Snowball Method explained
14:00 The Avalanche Method
16:59 How to set up your finances
19:34 The largest amount of debt John has seen
27:34 Should student loans be paid off?
30:21 Is a mortgage a good debt?