As Americans’ personal and national debt-load continues to skyrocket, there’s an accompanying increase in media attention - horror stories about lives and countries ruined through impossible debt burdens. Certainly, there are any number of threats to solvency presented by thoughtless borrowing, but not all debts are bad ones. Investing in infrastructure through loans saw the United States out of the great depression, and, in the same way, personal loans can help individuals build houses, start businesses, fund higher education and begin any number of beneficial steps forward. However insurmountable the bills may seem, it’s important to recognize there are different sorts of debts. And some of them are nothing to be ashamed of.

Credit analysts don’t merely tabulate all the money owed, after all. There’s many varieties of accounts, and debt professionals understand the distinctions between different sorts of debts. Loans taken out for investment purposes, for example, are considered healthy. Home ownership almost always necessitates a mortgage, but, over the course of the loan, the house is expected to grow in value and become an asset. Loans for college should see similar results over the course of a career. Investments, wisely chosen, may require belt-tightening in the short term, but planning for the future’s never a bad risk.

At the same point, of course, unnecessary debt negatively affects the opportunities available for any consumer. Shopping sprees, borrowing from one card to pay minimums on another, depending upon revolving accounts to fund household bills and living expenses - these are indications of a greater financial problem and should force consultations with debt professionals.

However tempting it may seem to use credit cards for the convenience of ordinary purchases, day-to-day accumulation of debt can sneak up on the consumer and, with escalating interest rates, become an unforeseen burden. Many lenders do offer special prizes and bonuses for every dollar spent and indulging such specials might make sense for responsible borrowers, but such debts should still be paid off as quickly as possible.

Beyond worries of compound interest and adjustable rates, there’s another reason to tackle revolving debt as a primary concern. FICO credit scores value installment plans, such as mortgages or student loans, differently than unsecured revolving debt such as credit cards and lines of credit. Obviously, diligent payments toward a recognizable asset would be more respected by credit analysts than ever-increasing debts not specifically ear-marked toward assets, investments, or career growth.

Of course, even those loans taken out for the best of intentions, aren’t necessarily the smartest financial decisions. Too many families take out second mortgages and equity loans with crippling interest rates to pay for their children’s education, for instance, when federally-assisted student loans are available. There’s never an easy rule of thumb where significant debts are concerned. With so many choices offered for debt structure (and interest hikes so cleverly hidden within billing statements), careful consumers should examine every alternative as closely as they can - and, whenever possible, seek the advice of debt professionals.

As payment notices pile, too many borrowers don’t even bother with consultation from trained analysts. There’s an understandable stigma attached to unpaid debts, and, when relief seems impossible, a good number of borrowers either bury their heads in the sand, turn to mercenary consumer credit counseling agencies, or, simply, give up and declare bankruptcy. No matter how desperate the situation, a reasoned consideration of each individual debt burden should be the first move for every borrower. A world of difference exists between the conscientious investor fallen to hard times and the free-spending scofflaw. Credit analysts (and FICO scores) recognize the distinction, and so should every borrower.

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