What Is Debt: Good Debt vs Bad Debt Explained

What has been corrected on this page?

Every accepted correction to this page is recorded with the exact change, so readers can see how the page improved over time.

1. 28 July 2026 · corrected by Emir Baycan

   Corrected a minimum-payment math error and a mis-cited journal: recomputed the credit-card payoff table using the actual 2%-of-balance declining minimum payment (the realistic card term the table itself named), which yields far longer payoff times and higher interest than originally stated (for example $5,000 at 20% APR takes about 44 years and roughly $20,200 in interest, not ~30 years and ~$7,800); corrected the $10,000-at-7%-vs-20% comparison to the recomputed figures; corrected Stewart's 2009 minimum-payment anchoring study citation to the Journal of Public Policy & Marketing (not Psychological Science); and qualified the Experian average auto-loan balance figure given uncertainty about the precise reporting year. The Kettle and Haubl (2012, Journal of Marketing Research) debt-paydown study was verified accurate and left in place.

   What the page claimed

   The article's minimum-payment table modeled a 2%-of-balance minimum but computed payoff times and interest as if payments were fixed, understating both by a large margin; it also cited Stewart's 2009 study to the wrong journal and gave a specific Experian auto-loan figure.

   What was corrected

   Recomputed the table under the stated 2%-declining-minimum model, fixed the Stewart citation, and qualified the Experian figure.

   Why: The table's own stated payment structure (2% of balance) did not match its computed outcomes, and one citation named the wrong journal. Corrections recompute the math and fix the citation rather than adding new sources.

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2. 12 July 2026 · corrected by Emir Baycan

   Stewart (2009) was published in Psychological Science, not the Journal of Consumer Policy (consistent with the article's own reference list).

   Before

   Research by Stewart (2009) published in the Journal of Consumer Policy found that the mere presence

   After

   Research by Stewart (2009) published in Psychological Science found that the mere presence

   Why: Verified already fixed correctly in both the article body and the bibliography/references entry (Stewart, N. (2009). Psychological Science, 20(1), 39-41), which are now consistent. FAQ does not mention Stewart or either journal. No further changes needed.

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