I received a question from Carrie H. Who asks,

I have about $20,000 in credit card debt and want to know if it's better to pay it off

using a home equity line of credit or a loan from my 401k.

I appreciate the question, Carrie. This show will answer it by reviewing eight of the best

methods to pay off debt and their pros and cons. You'll learn how to evaluate different options

and know which one is best for you in the long run. Hey friends, thanks for joining me this week.

I'm Laura Adams, a money expert and author who's been hosting the Money Girl podcast since 2008

with over 40 million downloads. My mission is to help you get the knowledge and motivation to

prioritize your finances, build wealth and have more security and less stress. If you're not

already subscribed to the podcast, that's the best way to ensure you never miss a weekly episode.

Also, I love getting your questions just like Carrie's. You can send them on our voicemail line

at 302-3640-308. You can also email me using my contact page at LauraDAdams.com.

Before we get into the various ways to pay off debt, I want to step back and review the differences

between good and bad debt on a high level. And while some people might think all debt is bad,

some can actually improve your finances. So that's why it's important to identify your good and

your bad debt. That will also help you know which ones to tackle first. Then we're going to get into

the various debt payoff methods. So one way to know if a debt is good or bad is whether it pays for

something that is likely to appreciate or depreciate. If you use debt to finance an asset that

increases in value and ultimately boosts your net worth, it's typically good. But going into

debt for something that loses value or deflates your net worth is terrible. For instance, a home

mortgage that allows you to buy real estate that typically appreciates over the long term.

Now while there's no guarantee that a home will be worth more, let's say in five years than

...