2007-04-05 12:56:48 · 11 answers · asked by Claudio F 1 in Business & Finance ➔ Other - Business & Finance
Not mandatory, but if you want to become wealthy, it's practically a requirement. It's much easier to borrow money, use it to make a lot more money, and then pay back the debt, than to work and save.
If you look at money as a tool to be utilized to accomplish a profit bearing task, it's relatively easy to see debt as a good (possibly even a great) thing. Borrowing money to buy a home is another good example, since the home provides shelter, provides a tax break, and appreciates over your tenure (often ten times over a 20 or 30 year period), this debt allows you considerable financial growth. You can also borrow money to invest in money bearing ventures (real estate rentals, business ventures, stocks, bonds, art, patents, etc) which can yield significant financial reward.
Of course you can always wait until you save money to do these things, but time is life. Most wealthy people are in a constant state of debt, but it is GOOD debt, because the money is working for them. People who max out credit cards to buy toys are doomed.
2007-04-05 13:22:07 · answer #1 · answered by Anonymous · 0⤊ 0⤋
Debt is the killer of financial stability. What if you get a new car then lose your job? If you don't get a new job right away and miss payments, car gets repossessed and you wind up with bad credit for years. And you have to pay the car off anyway.
Save your money for things until you can pay for it in cash. The only thing worth going into debt for is your own home.
If you need a credit card, try a secured card.
2007-04-05 20:04:42 · answer #2 · answered by runner1 6 · 0⤊ 1⤋
Yes, school debt, home debt, starting a new business debt, you can either get rich and have some debt our save your money and just have a lot of money in the bank.
2007-04-05 20:00:25 · answer #3 · answered by I'm so cool 3 · 0⤊ 0⤋
What do you mean by "grow financially"? If you mean improve your credit score, than yes.
In order to build credit you have to use credit and the only way to do that is to take out loans and pay them back on time.
If you keep a balance on your credit card your credit will grow faster, but it will cost you money in interest.
2007-04-05 20:03:48 · answer #4 · answered by Wraith53089 3 · 0⤊ 0⤋
debt is necessary to keep you under the control of the banks and government.
2007-04-05 19:59:59 · answer #5 · answered by Anonymous · 0⤊ 0⤋
yes, in the same way you need to get a loan to have a house and eventually sell it for more. you will either have a student loan to get a degree to make more money, or a business loan to start a business and have the ability to make profits. as long as you do research you will inevitably make more more money than you have spent to make it possible.
2007-04-05 20:02:03 · answer #6 · answered by b-rad 3 · 0⤊ 0⤋
Yes. Unless you have found a way to eliminate risk and/or grow without leveraging you $.
2007-04-05 20:01:33 · answer #7 · answered by Anonymous · 0⤊ 0⤋
Yes, to show that you can pay it off. YOu show you have to need the money in order not to need the money
2007-04-05 19:58:56 · answer #8 · answered by Experto Credo 7 · 0⤊ 0⤋
i don't think so. well, maybe if you spend a lot, like its an addiction, major debt can teach you a lesson.
2007-04-05 19:58:58 · answer #9 · answered by rt1290 6 · 0⤊ 0⤋
You have to spend what you don't have
easier go than come
you have to spend money to make money
2007-04-05 20:01:14 · answer #10 · answered by airmandan10 2 · 0⤊ 0⤋