FLEXjs
MuscleHead
- Apr 23, 2012
- 4,421
- 1,573
There is nothing wrong with debt. Its one of the most important things taught to those in finance and venture capital. Leveraging your capital to work for you with some appropriate debt is a great thing. I can't think of a single business that functions entirely off of liquid capital. Doing so is bad for its value.
Too much debt is bad and so is too little debt. Most people just don't know how to appropriately leverage debt to their favor and instead think of debt as maxing out department store credit cards.
In a Business, debt reduces shareholder risk and increases ROI.
The analysis doesn't hold true when discussing personal finances. Consumer Debt is almost never a good thing for an individual.