Why “all debt is bad” is not useful education
Isn't the safest answer just to avoid debt?
2 minute read
“All debt is bad” is a rule for people who are not going to learn the difference. It works, in the way that never driving prevents accidents.
The cost of that rule is invisible: the property you did not buy, the business you did not fund, the opportunity that needed to move faster than saving allows.
The useful version is a test, not a verdict. What does it cost, what does it produce, is the payment covered, and what is the exit if it does not work?
Why this matters
You cannot make good use of a tool you have been told never to pick up.
What to do with this
- Replace the rule with the test, and apply it to every debt you currently hold.
Want this applied to your own numbers?
Ask CredABLE about this