Myth: Debt is a tool and should be used to help create prosperity.
Truth: Debt is not a tool; it is a method to make banks wealthy, not you.
Debt is dumb. Most normal people are just plain broke because they are in debt up to their eyeballs with no hope of help. If you're in debt then you're a slave, in the sense that you do not have the freedom to use your money to help change your family tree. According to a recent survey about debt, 78 percent of baby boomers have mortgage debt, 59 percent have credit card debt, 56 percent have car payments.
It takes a lot of will, discipline, courage and help to slay the debt monster. But it can be done. Imagine how much you could put toward retirement if you just didn't have a stinking car payment and credit card debts? This is how the wealthy build their wealth. Debt is really dumb. Welcome to the real world!
Source: Dave Ramsey
Get more information on debt.
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2 comments:
when an individual borrows a million bucks its a personal problem,..... but when a country in debt churns up trillions of dollars and many trading partner countries are holding its currency, it becomes a global problem.
How about next course to differentiate between real asset and liabilities. :)
Many people though car and house is an asset, in fact, it is otherwise, if you can't make money from your car and house. Those are real asset to the banks as long as you owe them money.
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