All debt, whether good debt or bad debt, has the same outcome. You receive now but you give back in the future. The only significant difference is that one debt works for you instead of against you. Is your wealth mentality itching to know the difference?
Good debt is anything that increases your net worth or has some future value.
Good debt enables you to anchor your assets, manage your finances and increase your value. Certain examples of beneficial debt are mortgages, student loans or a loan to consolidate debt; all of which are usually with lower interest rates. These investments will grow in value or generate long term value – unlike bad debt.
Bad debt is debt incurred on purchases that quickly lose their value and create no long-term income.
Bad debt would be considered anything that is a depreciating asset. The debt typically carries a higher interest rate which makes it harder to pay down in the long run.
WISE BORROWERS WILL MINIMIZE THEIR BAD DEBT WHILE MAXIMIZING THE DEBT THAT CREATES VALUE.
To start minimizing the bad debt, it will require that you put your wealth mindset on and take an honest look at your finances. How much of your monthly expenses are going to debt that is depreciating your net worth? Once you determine which pesky debts are doing you harm, you can make the choice to pay down the debt and get rid of it for good. Then you can use the resources you were putting towards that debt to leverage debt that will benefit you in the long run.
ACCOUNTABILITY WILL BRING YOU SUCCESS.
It can be easy to make excuses on why you can’t rid of the unsecured debt. Taking action can be daunting, but the good news is you don’t have to embark on it alone. Accountability is a powerful tool while on this journey.
I want to empower you with the tools needed to attract wealth and diminish any debt that devalues your worth. So, are you ready to start attracting wealth into your life? If yes, NOW is the time to take the first action step – read more about three new offerings “Journey Towards Financial Success” that I am creating JUST FOR YOU.