Depending on the amount of debt you have acquired and your long term goals, debt can have either a positive or negative affect. The first step is to identify your long term goals. If for instance, a long-term goal is to retire some day, you will probably want to get rid of debt quickly so you will be able to use that money for saving and investing. Next, I would suggest determining how much debt you really have. List each individual debt you have, along with its corresponding interest rate and amount you owe. Now that you know where you stand, you now have to decide what you would like to do. If your debt comprises more than 25% of your income, I would suggest eliminating much of it. bankrate.com offers an excellent debt calculator. It takes into account each interest rate, balance, any raises you might receive, and cash windfalls (income tax return) you might receive, and any extra money you can put toward your debts each month.

Debt can be a resouceful tool if used properly. It can help you fulfill long & short term goals.

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