Online Debt Collection Live

First of all, there are going to be many that choose to stop reading this article right away because it disagrees with their basic instinct as to what debt is for. In fact, it may very well go against many of our own financial paradigms; that is to say, using debt as a tool to leverage our chances of financial independence is a poor choice.

For those of you who may disagree… just take a minute to hear me out.

I’ve heard debt describe as a “two-edged sword.” In other words, debt can be used for a lot of good, improving the financial status of many, OR it could be used to cut the individual looking for the leverage it may possibly offer, crushing that person’s financial situation completely.

Some term it OPM (Other Peoples’ Money); others may call it a good, low-interest credit card. Whatever the case may be, if you’re using debt to put you in a better position financially, you may want to think again.

I’m not saying you can’t make money using debt; people do it all the time! But at what cost?!

Have you ever heard of the person that uses real estate debt to make money? I have. Do they actually do it? Yeah- some probably do. How about using a credit card to finance a short-term business investment? Ever heard of that one? I have too. Or what about going into debt to finance a business that doesn’t have a thought out business plan?

For every ONE person that makes debt a real tool to leverage a better financial position, there are literally hundreds that end up in a much worse spot.

Again- this brings me to the same point brought up at the beginning: Debt brings plenty of risk, enough to offset the perceived benefits that may be actualized.

Don’t risk it; be smart. Go into debt for a home- that’s it. Everything else needs to be handled differently. Unless you’re getting a real loan from a bank that, as a prerequisite, requires you to put together a very comprehensive business plan, don’t go into debt.