Why is debt not understood in life and business?
Hi, why don’t you understand debt?
A sensitive topic for most, yet I will cut the crap and get you right into it.
Debt is used to generate more income by the rich and debt keeps the poor down and bad debt is very common in these times. Tragic yet the truth, debt can be both good and bad, yet most people never understand how to use debt for good. An example of good debt is: using debt to put down money on a real estate deal which will produce future cash flows. Not a house to live in, a house which will produce cash flows.
Your ability to use and understand debt will probably determine some of your financial success.
Learn how to eliminate debt:
If debt is a major problem in your life, it is due to your own decision making- you must take responsibility. Debt should be used to purchase needs and to fund business deals e.g) raising capital for business. Unfortunately people get credit cards and take on bad debt to purchase items they “want” as this always seems like an easy way to get what you want out of life. You should never take on debt without understanding how you will pay it back and how quickly you can.
Debt is the cause of massive financial stress globally and it is also a key factor in why relationships crumble. You must get educated about how to use debt in order to not put yourself in poor positions later in life, most people want to take on debt without understanding the long term consequence of debt. It is easy to take on debt and to keep taking on more as it usually offers a quick short term fix to peoples problems but problems should be solved by solving for the root cause and not by using a band aid- “debt”.
More on how to handle debt:
Using debt to generate income:
To conclude, once you have learnt to understand debt it makes life a lot more stress free as financial stress is the main cause of stress globally. You have to change the way in which you view debt to be able to use it to generate more future income or to fund your wicked ideas.
Thank you for reading and have a solid week.
Regards,
Jagdip
