Debt is a dirty four letter word to many people. Yet there are some instances where it can have a strategic use to build wealth. Whether you have high interest rates on your credit card or a car loan on a depreciating asset, debt can be both good and bad for you depending on how you use it.
Wealthy people use good debt to increase their income and bring real wealth and accomplish financial goals. When they pay the debt their long term wealth increases.
Bad debt often comes with high interest payments if not paid in full on time, and it will not enable you to create wealth for yourself.
Almost everyone has both good and bad debt. The top priority for a bright financial future is by eliminating the bad debt so that you can work toward financial success. Here are 8 ways to use debt to build wealth.