Many people find themselves inside debt as they Start working it easy to find yourself inside debt but for the majority of people is hard to get out. That is why there is bad debt the ones you can get yourself out of they are all debt. And the once which help you to get out of them are good debt . That was so simple but it goes deeper than just paying off debt.
Let’s start with Good News, Good debt I mean. Good debt in simple is the debt you make to start a business that works and pays off the debt . I mean the debt which you make to make more money with them, the once when you make you don’t worry about paying them back because you know that they will cover for themselves.
E.g When Jack borrows R10000 which needs monthly payments of R1500 and he is going to use R10 000 to make R 4000 with it every month that is called been smart and doing good debt.
The example I just gave you shows you the formula of how other rich people got rich by using debt to create wealth. The things you think are impossible in its simplest form.
Talking about bad Debt, its all those debts which you make but they don’t bring you any cents back to help you pay them.
E.g Maria Saw a good dress at Legit Store and since she is broke she decides to go get a loan to buy that dress and when she buys it she goes to brag about it to her friends that her dress is cute only for few days and the boom is out of fashion.
Be smart about money and follow me on Instagram @mt_icon to learn more about money.