Signs your debt is out of control

David Koch shares his tips on how to clear your credit card debt.Used appropriately, debt can build wealth. Used inappropriately, debt can destroy wealth.With so much talk among politicians and in the media about Australia’s national debt levels and our ongoing budget deficit, it got us thinking … how do you assess your own household debt and know when you’re in the danger zone?As the Treasurer of your family budget, you are responsible for taking control of your debts.So here’s our guide on how to go about it.1. Understand the difference between good and bad debt‘Good’ debt is money borrowed to buy something that will rise in value, bring in an income and create financial discipline. A good example is borrowing to buy a house.Bad debt is money borrowed to fund everyday expenses like a holiday, or to buy an asset that will fall in value like a car.2. The warning signs3. Borrow within your means at the start4. Take control of your spending5. Make extra repayments