Two camps yell about debt online. “Debt is slavery, avoid all of it!” “Debt is a tool, use leverage!” Both are too simple.

Debt is borrowed time — you get something now and pay later, with interest. Whether that's smart depends entirely on what you're buying. Borrowing for something that grows your future (an education that pays off, sometimes a home) can make sense. Borrowing at 24% for things that lose value the second you own them (clothes, gadgets, nights out) is setting your future self on fire to feel warm now.

The line isn't “debt good” or “debt bad.” It's: does this borrowing make me richer or poorer over time? High-interest consumer debt almost always makes you poorer. That's the one to fear.

This week: if you carry any high-interest debt, list it with the rates. Knowing the number is step one. Attacking the highest-rate balance first is step two.

— Kevin