Core Insights - The article emphasizes the importance of understanding different types of debt and suggests strategies for paying it off effectively in 2026 Group 1: Understanding Debt - Not all debt is equal; categorizing debt into "less ideal" and "necessary" helps in deciding repayment strategies [2] - "Less ideal debt" includes loans for depreciating assets or high-interest debt, while "necessary debt" pertains to loans for appreciating assets or future income [2] Group 2: Repayment Strategies - Credit card debt should be prioritized for repayment due to its high interest and non-deductibility at tax time [3] - The snowball method, which focuses on paying off the smallest debts first, can be motivating for some individuals [3] - The avalanche method, which targets the highest interest rates first, is recommended for those looking to minimize interest payments [4] Group 3: Tax Considerations - It is crucial to consider the tax implications of debt; some interest is tax-deductible while others, like credit card interest, are not [5] - For example, mortgage interest can be deducted if itemized, up to $750,000 in mortgage debt [5] - Evaluating balance transfer cards involves weighing fees against potential interest savings [6]