4 Reasons You Should Love Your Debt
You should love your debt. No, I’m not joking. Contrary to popular belief, debt isn’t supposed to be some scary monster that’s going to eat away at your livelihood. In fact, debt is actually incredibly beneficial!
Don’t believe me? Well then, here are 4 reasons why you should love your debt:
1. Manage Debt Well And You’ll Get Better Loans
When you go to take out a loan one of the things your lender will look into is your credit history. They want to see how well you’ve managed your debt in the past so they can make an informed decision on what sort of loan they can clear you for. How much you’ve borrowed in the past, whether or not you missed any payments, and how much you paid towards your balance each month are all taken into account. But let’s say you go into the bank to ask to apply for a mortgage or car loan. If you’ve never had debt before, your chances of getting a favorable loan are slim. If you’re able to take on debt and manage it well, taking on debt in the future will only get easier. The better credit history you have, the more likely you’ll receive a lower interest rate and longer payment periods.
2. Debt Gets You the Things You Need
Let’s face it, there aren’t that many people in the world who can save up to buy a house in cash. There are a few basic necessities in life that are just too expensive to purchase outright. Debt, in this situation, is a handy tool. Providing you stay within your means and do your homework, major expenses like a home or education can be yours at a fair price. Debt, in a lot of ways then, is a gateway to the things you need.
3. Debt Can Make You Money
Many entrepreneurs seek to self-fund their own business’. Running your own business, while risky, has numerous perks and, if your product or service really takes off, could result in a lot of wealth down the line. Debt, in this way, provides you with an opportunity to make it on your own and could set you on a path to immense success. Of course, you should always weigh all options for funding before deciding to borrow money.
4. Debt Can Be An Investment
While home improvement projects can be expensive, they have multiple benefits. Not only are you giving your living space an upgrade that you can enjoy, you’re also increasing the value of your property. It’s very possible then that you’ll end up making back the money you put in and then some! Not to mention, if you were to take out a loan to upgrade your appliances and heating source, you could see those returns even quicker in lower heating and electric bills.
Debt isn’t something that you should be afraid of. While, in an ideal world, we’d all be able to afford the things we need outright, in this day and age that just isn’t the case. Luckily, you can still acquire all the things you need providing you do your homework and do whatever you can to ensure the debt you do take on is good debt. To learn more about the surprising benefits of debt and how you can learn to love it, take a look at my latest book: Life & Debt.