Personal Finance Myth #4

Considering all debt or loans are bad is a myth | Vrid
People illustrations by Storyset

All Debt is Bad

Do you think taking loan is bad? No matter what’s the purpose is? 

Well, you are wrong. 

Sometimes borrowing money makes financial sense, other times just the opposite. 

Good debt has the potential to increase your net worth or enhance your life importantly. Bad debt involves borrowing money to purchase rapidly depreciating assets, or only for the purpose of consumption. 

Determining whether a debt is good or bad sometimes depends on an individual’s financial situation, including how much they can afford to lose.

Share this with your friends and family. Take loan only if it makes financial sense and you have the capacity to pay back. If you have taken lots of loan, check out our newsletter on how to repay loans quickly and save money.

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DISCLAIMER: This newsletter is strictly educational and is not an investment advice or a proposal to buy or sell any assets. Please be careful and do your own research.

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