Debt Can Be a Positive Or Negative Force - Which is it For You?

Debt can be a positive or a negative part of your life depending on how you manage it. For some parts of life it is very nearly essential, kike buying a home. On the other hand if abused it can ruin your life

Debt Can be Positive

Debt can help you make large purchases like homes or cars that would be difficult or impossible to save up for. Beware of spending more than you need/can afford as this is a sure way to debt misery.

Debt can help you through times when your income is reduced, because of losing your job or taking time to study for qualifications. But if you find yourself borrowing for an extended period of time you really need to consider whether this is a short-term emergency or a permanent change.

Debt Can be Negative

Debt can tempt you to spend money on things that you do not really need.

Debt reduces your future income and will eventually make you poorer.

Chronic debt problems can harm your health and damage your relationships.

Conclusion

Like a lot of things in life debt can be a useful thing if used properly. If you only have manageable debts on a home and possibly a car you are probably managing your debt well. However if you are letting it get out of hand (you are using it to support your spending habit every month) it can be a destructive force that will affect your life for years. The consequence of not dealing with a spending/debt problem can include bankruptcy, losing your home, and destroying relationships.