Is all debt bad? Is it possible to live 100% debt free? Are there times when it may be advisable to take out a loan? How can you tell the difference between bad debt and “good” debt? Is there even such a thing? There are some types of debt you should avoid like the plague!
Debt is certainly one of the biggest causes of financial distress, but not all debt is the same. It’s important to learn about the ins and outs of different types of debt and the negative repercussions. Then it’s up to you to decide what level of debt your family is comfortable with carrying, if any.
Listen to this 3-minute segment from my interview with Crystal Faulkner of the BusinessWise Radio Show below for my take on Good Debt versus Bad Debt.
The weight of debt can be very heavy, so I want you to be very cautious with it. I would love for you to avoid debt entirely, however I know that may not be your choice. So if you are going to borrow, here are two rules to keep in mind:
Borrow as little as possible and pay it back as quickly as possible.
Debt should not be used for consumption, only to build income and wealth.