If you think that all debt is the same, not so fast. Debt can fall within two categories: good debt and bad debt. Sounds confusing, right? Think of it this way: some debts can help you achieve your financial goals, while others just suck the money out of your pockets with nothing to show for it. Clearer now?

What is Good Debt?

Good debt can be a part of a healthy financial strategy. It typically comes with lower interest rates and can help you increase your income or net worth. Purchasing a home or investing in a business or real estate that offers returns are examples of good debt. Some others include:

Student Loans

A student loan is an investment in your future because furthering your education can lead to increased income. When calculating how much you need to borrow, consider your future potential income to avoid borrowing more than you will be able to repay comfortably.

Auto Loans

Depending on where you live, a car may be a necessity to get you and your family to school and work. And since most people cannot afford to pay cash for a vehicle, borrowing money to purchase a car can be considered good debt.

What is Bad Debt?

On the flip side, certain debts can lead to financial trouble. They typically involve high-interest rates and loans for unnecessary purchases or items that lose value.

Credit Cards

Credit cards teeter the line between good and bad debt, depending on how you use them. If you manage your credit cards and pay off your balance every month–and cash in on the perks and rewards–a credit card isn’t so bad. But a credit card can be a slippery slope because if the balance isn’t paid in full each month, it can grow exponentially. And at interest rates that can climb higher than 20%, credit card debt can be your most expensive debt.

Payday Loans

Payday loans are cash advances ranging from $100-$500 that you take against your upcoming paycheck. The appeal is that its quick cash that you will pay back quickly. The bad news is that the interest rates can equate to up to 400% APR. And when it becomes a habit to borrow money this way, it can lead to a cycle that is difficult to catch up with.

Replace Your Bad Debt with Good Debt

If you feel like you are drowning in high-interest debt or are facing the prospect of using credit cards or other high-interest loans, you are not alone. You have options. You can turn your bad debt into good debt. How is that possible? Fiona!

What is Fiona, and how does it work?

If you would like to pay off your high-interest debt through debt consolidation or need a loan for an unexpected personal expense, no need to turn to high-interest loan options. Fiona will tap into its multitude of resources to find a loan that works for you.

And if your financial strategy includes investing for the long haul, Fiona’s vast network can help you secure a student loan to continue your education or purchase a vehicle.

In the short 60 seconds, it takes Fiona to run your numbers, it is searching for all the top lenders. Depending on your credit score, you can obtain a loan for up to $100,000 with rates starting at 3.84% and terms ranging from 24 to 84 months.

You only need to fill out one application to see offers from multiple lenders. And the application process will not negatively affect your credit. Saying good-bye to bad debt has never been easier. Using Fiona, you can flip your debt from bad to good and set up your financial future for success.