5 Types of Debt
Debt is defined as any money owed to anyone for anything.
There are 5 different types of debt:
1.Credit Card Debt
2.Consumer Debt
3.Mortgage Debt
4.Investment Debt
5.Business Debt
When using any of these debts always ask these questions:
1.Does it make economic sense?
2.Do my spouse and I have harmony and agreement about taking on this debt?
3.Do I have spiritual peace about entering into this debt?
4.What personal goals and values am I meeting with this debt that can be met in no other way?
The fundamental danger of debt is that compounding works against you rather than for you. Anytime debt is incurred there should be a guaranteed way to pay it back and have at least the required installment amount in your discretionary income.
Never incur debt to pretend a lifestyle that doesn’t exist, live strategically and always calculate the cost before entering into any debt contracts.
E. Raines
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