Good debt. Is there really such a thing as "good debt" or "the best kind of debt"? Today, we will discuss "good" debt and show you what kind of debt is the best for you.
It’s not often people admit they like debt. In fact, it almost never happens. Student loans, personal loans, overdraft “protection” or credit cards? What about a home equity loan, a family loan, or a car payment? Or maybe that boat, timeshare or retirement fund? While there are many forms of debt, debt is not good. But, when considering theses various types of debt...
I know, right? A silly question. I actually posed this question in my Facebook community (pssst come join us!) not too long ago and every response was along the lines of "you're kidding right?". Note: All the responses voted for were additions they wrote in. I love that. I completely agree! In fact, as I write this, I am celebrating ten years debt free and the same is possible for you!
Most people think of debt as something they can handle. They say, "I can take care of those payments" and there is a belief that they can pay the lender back in time. They may even view some of their debt as good. Obtaining things via debt may feel good. You've been able to purchase items when you wanted them but once the excitement wears off, you are left with the tab and it is not typically something you can pay off overnight. In fact, even if you are good at paying bills and making payments on time, all you are doing is training your mind and dollars to be a slave to payments including debt. You are using your own dollars to work for someone else! That is not how you grow wealth.
The payment mentality teaches you to be a slave.
If you truly want to grow wealth, I encourage you to do one BIG thing to debt.
Your parents taught you the same thing about things like drugs when you were growing up… and debt is addictive too! So, just say no! It's not as difficult or intimidating as it seems and, in the long-run, you will be so happy you took care of or avoided the debt in the first place. I encourage you to change your mindset from one that focuses on the best kind of debt or good debt to one that aims to transform your money to work for you and helps you become debt free. In the end, this will certainly leave your wallet heavy and your heart light.
Question: So, did you decide which is your favorite kind of debt? Are you willing to avoid debt altogether? Do you have existing debt you once saw as "good" but now want to focus on getting rid of and you need help doing so? That's okay. Don't delay, reach out to me today.
Want to be part of an inspiring encouraging community of like-minded individuals? Join my free Facebook community the Strong Together Money Community. I hope to see you there!