The Difference Between Bad Debt and Good Debt | Leveraging Other People’s Money to Help you Achieve Your Goals (Video)
I am hearing a lot of confusion when it comes to credit and people understanding that there is a difference between BAD BEBT and GOOD DEBT.
Well, I’m here to explain it to you!
Debt is money → money is a tool → tools can be used to tear down or build.
Questions to ask yourself:
- Am I using this debt to acquire an asset?
- How this money help me increase my net worth?
- How this money help me grow my business venture?
- Will this money help me gain new skills or education to increase my earning potential?
Great Reads on Money Management:
Debt can be very valuable, so long as you have a strategy in place and the knowledge to use that debt to acquire the asset that you set out to acquire. Good debt is supposed to be something that you utilize when you know for certain that taking on that debt is going to catapult you to a better position than you would be otherwise.
Investing in yourself, investing in your business, are smart things that you should be doing. Understanding that debt can be a part of that strategy will help you succeed at whatever it is that you’re working on accomplishing.