Being responsible with your money is a must do job that you accomplish almost everyday. That trait makes it easy for you to discern how much you need to spend on necessities and how much for your little extras.
Sometimes, however, spending for necessities can get a bit out of hand, especially when you are faced with emergencies. Also, there is the factor of possibly losing your job, especially with the present "recession" we are experiencing. When this happens and you do not have available savings and you solely count on your credit cards or loans, then you're on the verge of incurring bad debt.
If there is bad debt, conversely of course there is good debt. Let's describe first the good debt. These are debts that you can not avoid, and therefore need your immediate financial attention. You have to pay them in a periodic basis. The best examples of good debts are monthly bills (electricity, gas, water) and tangible loans (car insurance, housing loan).
Now, bad debt is something that does not cause the immediate loss of the amenity, yet becomes far worse if you do not pay. It piles up until you can not manage to pay for it anymore, destroy your credit standing and often blocks you from obtaining credit in the future. The best examples of bad debts are credit card accounts, personal loans, and unpaid medical bills.
Good debt or bad debt, it is still debt after all. Some people decide to pay for a professional Credit Management Company. But why pay extra for an agency when you can practice good credit management? Again, being responsible is the key to have the GOOD life: Get Out Of Debt.