Is Debt good or Bad?

May 23, 2018 | Filed under: Financial, Success, Uncategorized

Interesting question, and for the average person, debt is bad. That is usually because they do not know the difference between good debt and bad debt.

Bad Debt is buying some thing you cannot afford, to impress someone that really does not care about you. Bad debt is buying things like: vacations, toys, cars, costing or lifestyle, that does not directly help you make money. Many folks over use and abuse credit cards getting themselves behind in payments.

But there is good debt. If i buy an asset to make money, and borrow money to do that, that is good debt. Example. My son, had 6k at age 16 and wanted to buy a car (a liability cause It COST money). I convinced him to put the money in a specific strategy, that earned 10 percent a moth. Well, now he is earning 600 a month. Could that be a car payment, and he get to keep the original 6k? Yes the asset pays for the car.

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