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June 10, 2008

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Remember, there is good debt: low-cost student loans that further your career and earning potential, home loans that when taken advantage of correctly build out equity over time and hedge against taxes and even low-cost car loans which allow you to drive to work and have earnings while hedging against inflation and the fact that as soon as a car leaves the lot it loses significant value.

Then, there is bad debt: credit-car loans, borrowing from 401ks, etc.

The smart thing is to understand when it is ok to have debt and when it is not!

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