When"Good Debt" Isn't

Debt clearly has a place in our economy and in our lives. That's what many financial gurus are trying to get across when they divide debt into "good" and "bad" categories. Typically, mortgages, student loans, and borrowing to start a business are considered good; most other borrowing is considered bad.

But that leads to another problem with typical debt advice, since too much "good" debt can sink you just as deep as too much "bad" debt.

I've received countless e-mails from people who borrowed $20,000, $50,000, and even more to attend college, only to find that they can't get a job in their field or make even the minimum payments on what they owe. Many had no clear idea of how much their borrowing would cost them when they graduated; they just knew that lenders were eager to give them the cash and that their educations were supposed to help them get ahead.