The average American card holder carries more than six credit cards and has a household debt of more than $10,000. Popular financial books and financial companies say there is good and bad debt. Let’s look at it in detail. Bad debt happens when we become dissatisfied in where we are in life therefore we buy things that may make us happy and satisfied for a while and includes things which does not have a lasting value. Bad debt depreciates very quickly. Examples are clothes, electronics, and vacation trips. Good debt is anything that can’t be afforded to pay up front without wiping out cash reserves or liquidating all investments. Good debt may help leverage future financial position. Examples are mortgages, business and school loans. In the end, if debt cannot be controlled there is nothing good about it.
When we are indebted with debt (bad or good), we are told how to spend our money, what to spend it on, and where to spend it. As a result, debt becomes our master. Freedom from debt involves us doing anything that we desire such as taking vacations, saving for retirement, giving to those less fortunate or starting that business that changes your family legacy. Conquering debt results in freedom for us and others. Here are some helpful tips if you are serious about eliminating debt to start the family legacy:
Eliminating debt is not only for your family but its purpose in your hands can reach people and places that have a need.
Make it a great day!
Cedric Dukes can be contacted at www.cedricdukes.com.