The economy is struggling, and consumer debt is at an all-time high. Total consumer credit reached nearly $2.6 trillion in May, according to preliminary numbers released earlier this month by the Federal Reserve Board --and that sum excludes loans secured by real estate (e.g. mortgages and home equity loans).In some cases, consumers are carrying so much debt that they can barely cover their interest charges, much less pay off their balances. This is especially true of credit card debt, where some interest rates are over 20%.
How to Tell if It's Good Debt or Bad
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