Bad Debt is any consumer debt. This includes credit cards, car loans, store cards, personal loans, anything that you use to buy stuff. For example dinners, clothes, electronics, toys, vacations. Anything that you don’t have the cash in the bank to pay for it. You are buying things you want now but can’t afford. You then end up paying a lot more. A dinner out that should cost $40 will end up costing you over $1000. Was it worth it?
Everyone that is really wealthy and knows money principles and wisdom will tell you the Number 1 thing to do to start building wealth is to get out of debt. Our course will walk you through how to do this step by step and help you create a plan. I know this can feel scary for a lot of reasons. Maybe you feel like it is hopeless or maybe you are scared to have to stop buying things. But this is a lie that society tells you and we buy into so you will keep buying things you don’t need and paying a lot more for them. Credit Card Companies spend millions to make sure you beg them for a card to go out and buy things and then charge you 30% interest and fees to keep their pocketbooks lined. Credit cards can actually be used in a responsible way which we will teach you in my courses but first, get a plan together, pause, and get out of debt, then we’ll walk you back through how to not go back.
Good Debt is something most people say WHAT? NO WAY!! to me in person haha. But it’s true there is good debt but it is not consumer debt. This is where you leverage debt to buy assets to expedite your wealth growth. For example, you can leverage loans to buy several rental properties, or an apartment building, or possibly some other type of business. An asset returns cash flow to you and goes up in value. So in the example of your rental properties, your tenants will be paying off your loan (debt) as well as making your asset go up in value AND putting cash in your pocket as net profit each month. This is good debt. When you use bad debt, those things go down in value or lose their value completely while you still pay a high interest rate and are a slave to your bill that comes each month that feels like you are never going to get out.
That is why I created SpendPower. I wanted to help people become FREE from all that is hanging over you, give you a simple easy to follow our plan, and break it all down step by step. You can do this. Millions have done it when they thought there was no way and I promise you that you can too.
I hope this helps you on your money wisdom search and let us know if we can help you in any way. Changing your money blueprint is very wise when you follow the tried and true principles that always work.
Have you checked out our Online Course to help you not only become debt-free but also start learning how to build wealth? Check out The Ultimate Guide to Foundational Wealth by clicking here