| Debt can be a complex subject for some, and so | | | | products with a credit card on high interest that |
| it tends to be brushed aside. The smartest thing | | | | depreciate as soon as they leave the store and |
| you can do is get yourself clued up and | | | | have no potential to increase in value. |
| understand the difference between good and bad | | | | Good debt on the other hand produces cash flow |
| debt. | | | | or capital appreciation thereby putting money |
| In spite of what we are led to believe, debt is not | | | | back into your pocket. |
| all bad. When used wisely with knowledge and | | | | Your goal should therefore be to accumulate as |
| purpose, it can greatly assist you in creating and | | | | much ‘good-debt’ as you can afford |
| building wealth. So, what is bad and good debt? | | | | and avoid purchasing bad-debt. You can |
| Bad debt exists when someone purchases | | | | commence getting your financial wellbeing in check |
| ‘want’ items, gadgets or status | | | | starting with the following three steps. |