Debt: Tool of wealth or not?
Debt is a type of other’s people money. It is a form of leverage.
But, according to Dave Ramsey: Debt is not a tool; it is a method to make banks wealthy, not you.
He said:
“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 USA Today article 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? This is how the wealthy build their wealth. Debt is really dumb. Welcome to the real world!”
Which debt management idea that you agree? Debt as a tool or not?
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