The number one reason why people tell you to get out of debt is because they believe debt is bad—for you.

Ultimately, the difference between the rich and poor when it comes to debt is understanding the difference between good debt and bad debt.

Bad debt is debt that makes you poorer, such as credit card debt, car loans, and more. This is the type of debt used to buy liabilities. Ironically, this is the debt that those who say debt is bad get rich from by selling to the poor.

Good debt is debt that makes you richer, such as a loan for investment property or to purchase equipment for your business that will make you a return. This is the type of debt that is used to buy assets. The rich use this kind of debt to buy assets or create products that they sell to the poor, who often take out bad debt to buy them. Perhaps you’re seeing how this works?

Want to learn more? Do you want to understand how to get rid of your bad debt once and for all and take your first step toward leveraging good debt?

Download My Free eBook