The word ‘debt’ might be the worst nightmare everyone ever has. Most people are afraid of debt. Then, my question is; is having debt is that bad? If you say that debt is bad, then why all rich people have debt?
In my opinion, having debt is actually something neutral, just like having money. It depends on how you use it. Let me give you 2 examples:
Example 1: There is a career woman who makes good money each month, let say she makes 20k per month. Unfortunately, she spend about 25k per month to buy the latest fashion collections. In the end of the year, she ends up having 60k debt.
Example 2: There is another woman, who takes 60k loan from the bank with 10% rate (she takes 5 years loan). Each month she have to repay the bank 1,5 k per month. She use this loan to fund her own business and each month she makes about 2,5k! Means she make $1,000 per month by having 60 k loan!
From 2 examples above, I think you can learn debt is neutral. If you use if for something productive, something that bring you money, then having debt is good. But if you use it to buy something ‘useless’ well, you can get lot of problem then.
If in case you got a lot of problem with your debt, I recommend you to use debt consolidation service as soon as possible. This way you can manage your debt better, get longer payback period and lower interest rate. Remember, consolidate your debt now!