The average American credit card debt continues to grow at a record pace. According to CardWeb.com, Americans owe $2 trillion in non-mortgage debt; this equals about $19,000 per household. The average American credit card debt is about $785 billion or approximately $7,500 per household. The numbers are staggering, so how do you know when debt is “acceptable?” Here are some types of debts that may actually make financial sense:

Mortgage debt . The average American credit card debt is a home mortgage. This is most people's biggest asset and a home loan is most people's biggest debt. According to the US Census Bureau, only 30 percent of homeowners have no mortgage (2000). Therefore, the vast majority of homeowners have financed the cost. In addition to all of the benefits homeownership provides, mortgage holders also reap substantial tax benefits. The key to making this debt work for you is to build equity by paying down the mortgage over time. In some areas, homeowners also benefit from appreciation. In fact, according to the National Association of Realtors, US homeowners gained an average of $9,000 in property value in 2003.

Student loan debt . While everyone agrees that education is important, the cost to obtain a college degree has more than tripled in the past 20 years. Therefore, the most common way to pay for an education is with a student loan. The average American credit card debt includes a student loan. While most student loans do offer attractive repayment options, many students are dismayed when they are still paying for their education 5, 10 or even 20 years after graduation. The key is to repay the debt as quickly as you are able and be sure not to default; the government can garnish 10 percent of wages for an unpaid student loan. Finally, remember that it is hard to place a value on a good education.

Medical debt. Even if you have adequate insurance, medical debt can add up quickly. Ideally, medical expenses can be covered by an emergency savings fund. Even if this is not possible, you should never forego necessary medical treatment because of financial reasons. Instead, try to make payment arrangements directly with the hospital or doctor; many will allow you to make payments over time. With the increase in the cost of healthcare, medical debt has also become part of the average American credit card debt. If you are able to negotiate a repayment schedule, be sure to get the details in writing to avoid future problems. When experiencing financial difficulty, pleasedo not be tempted to let your medical insurance lapse.

Credit card debt. Last but not least, credit card debt has become a huge part of the average American credit card debt. Credit cards are a tool of convenience and maintaining a credit card for emergency reasons or an occasional large purchase is perfectly acceptable. Credit card debt only becomes a problem when misused; credit cards should never be used to extend your income. As a general rule of thumb: if you don't know how or when you will repay an item, you probably can't afford it. If you do carry a balance occasionally, look for a card with good repayment terms. You can search credit card rates and terms by visiting www.cardweb.com.