Debt, is it Good or Bad?

Debt can be good as it allows you to get something before you have the money to pay for it. It can be bad simply because it forces you to put more of your income over time to fully pay for that purchase.

What you are not told is that the rich generally borrow money to purchase things that will make income, or capital growth.

There is another aspect to this. These type of purchases are almost always under some form of business structure, which means that any loan interest charged becomes tax deductible. This reduces how much tax needs to be paid!

So lets look at the outcome of these two different ways of using debt:

Finance, Wealth System