Debt is often viewed with apprehension and fear, but what if I told you that not all debt is bad? In fact, debt can be a powerful tool for building wealth and achieving financial goals when used wisely. In this post, we'll debunk the myth surrounding debt, explore why it can be good, and understand the crucial difference between positive and negative debt.
Understanding Debt: Debt, simply put, is money borrowed by one party from another. It's commonly associated with loans, credit cards, mortgages, and other forms of financial borrowing. While excessive debt can lead to financial hardship and stress, judicious use of debt can actually be beneficial in certain situations.
Positive Debt vs. Negative Debt: Positive debt is debt incurred for purposes that have the potential to increase your wealth or improve your financial well-being over time. Examples of positive debt include student loans for education, mortgages for real estate investment, and business loans for entrepreneurial venture...