Get Debt Free

Get Debt Free
It goes without saying; your debts will pull you down faster than anything else.

Debts reduce your net worth (which is your wealth) because of the cost of the debt, but if it is bad debt then the situation is even worse. Bad debt is incurred on things that do not increase in value, whereas good debt is incurred on things that increase in value.

Debt can be used wisely, but only for assets that appreciate or grow in value, and hopefully also generate revenue income. If debt is not controlled it can easily get out of hand. It will result in financial bondage rather than financial freedom. The best advice is; don’t get into debt at all. Money used to pay off debt cannot be invested, but put into other options that will enable it to grow.

Debt money is lost money because it is gone.

If you must go into debt, make sure that what you purchase will grow in value or produce income, or preferably have a combination of the two. Simply going into debt for luxuries such as new clothing, jewellery, electronic equipment, or a new cell phone, etc is money not working for you and therefore will not b...

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