Comments on: No Such Thing As Good Debt? http://www.thewisdomjournal.com/Blog/no-such-thing-as-good-debt/ Wise Choices. Improved Finances. A Better Life. Sun, 05 Feb 2012 12:01:40 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: Johanne http://www.thewisdomjournal.com/Blog/no-such-thing-as-good-debt/comment-page-1/#comment-12226 Johanne Mon, 16 Nov 2009 07:09:28 +0000 http://www.thewisdomjournal.com/Blog/?p=915#comment-12226 During this economy, it's quite hair raising to get into any kind of debt. It's much easier to live life the old fashioned way where liquidity is more valued than credit. During this economy, it’s quite hair raising to get into any kind of debt. It’s much easier to live life the old fashioned way where liquidity is more valued than credit.

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]]> By: traineeinvestor http://www.thewisdomjournal.com/Blog/no-such-thing-as-good-debt/comment-page-1/#comment-12150 traineeinvestor Mon, 09 Nov 2009 07:43:56 +0000 http://www.thewisdomjournal.com/Blog/?p=915#comment-12150 While few would argue that debt is a double edged sword, my view remains that on balance debt is a good thing if used and managed appropriately. In my own case the use of debt enabled me to buy more real esate as Hong Kong was emerging from the Asian crisis and SARS in 2004 and subsequent years than I could have without that debt. The use of debt has significantly improved our household balance sheet and accelerated our progress towards financial independence. Could it have worked against us? Possibly, but we had plans to deal with most of the things which could have gone wrong, including a further decline in property prices and rents and the loss of one job. I lost a lot of sleep the first time I borrowed to invest. Once the rent started coming in, everything was fine. Now I suspect I would lose sleep over the loss of opportunity if I did not gear my investments. That said, once we quit working we will progessively deleverage as we will not have our salaries to fall back on. While few would argue that debt is a double edged sword, my view remains that on balance debt is a good thing if used and managed appropriately.

In my own case the use of debt enabled me to buy more real esate as Hong Kong was emerging from the Asian crisis and SARS in 2004 and subsequent years than I could have without that debt. The use of debt has significantly improved our household balance sheet and accelerated our progress towards financial independence. Could it have worked against us? Possibly, but we had plans to deal with most of the things which could have gone wrong, including a further decline in property prices and rents and the loss of one job.

I lost a lot of sleep the first time I borrowed to invest. Once the rent started coming in, everything was fine. Now I suspect I would lose sleep over the loss of opportunity if I did not gear my investments. That said, once we quit working we will progessively deleverage as we will not have our salaries to fall back on.

]]> By: Debt Free Living: 5 Attitudes You Need to Adopt for Success | My Super-Charged Life http://www.thewisdomjournal.com/Blog/no-such-thing-as-good-debt/comment-page-1/#comment-12126 Debt Free Living: 5 Attitudes You Need to Adopt for Success | My Super-Charged Life Fri, 06 Nov 2009 11:01:30 +0000 http://www.thewisdomjournal.com/Blog/?p=915#comment-12126 [...] at The Wisdom Journal wrote a little about this in No Such Thing As Good Debt?  I think he makes it clear that even what some call “good debt” can quickly turn [...] [...] at The Wisdom Journal wrote a little about this in No Such Thing As Good Debt?  I think he makes it clear that even what some call “good debt” can quickly turn [...]

]]> By: Matt http://www.thewisdomjournal.com/Blog/no-such-thing-as-good-debt/comment-page-1/#comment-12111 Matt Tue, 03 Nov 2009 23:47:24 +0000 http://www.thewisdomjournal.com/Blog/?p=915#comment-12111 I agree that Debt is a double edge sword. In the case of a mortgage (for example) you can pay the minimum on a house note over a long period of time and "invest the difference" and you can come out way ahead that just spending extra money to pay down the debt faster. But it depends on the person, and whether they have the disciplined enough to control that debt, rather than vice versa. I agree that Debt is a double edge sword. In the case of a mortgage (for example) you can pay the minimum on a house note over a long period of time and “invest the difference” and you can come out way ahead that just spending extra money to pay down the debt faster.

But it depends on the person, and whether they have the disciplined enough to control that debt, rather than vice versa.

]]> By: Another Weekly PF Roundup » JoeTaxpayer http://www.thewisdomjournal.com/Blog/no-such-thing-as-good-debt/comment-page-1/#comment-12095 Another Weekly PF Roundup » JoeTaxpayer Sun, 01 Nov 2009 12:04:14 +0000 http://www.thewisdomjournal.com/Blog/?p=915#comment-12095 [...] at the Wisdom Journal asks if there’s No Such Thing As Good Debt? Given the current state of the economy and insecurity regarding jobs, I understand and respect the [...] [...] at the Wisdom Journal asks if there’s No Such Thing As Good Debt? Given the current state of the economy and insecurity regarding jobs, I understand and respect the [...]

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