Many people, even so-called consultants, will tell you that there is “good debt” and “bad debt.” Wrong! Please don’t buy into the “good debt” / “bad debt” discourse. ALL debt is bad! Yes, at times we are swayed into a purchase because we don’t have the cash, but that does not make the debt good! […]

Some go into debt for so-called investment purposes. They are buying second homes, seaside properties, even speculating in commercial development or in the house rental market. People have no problem borrowing the money and joyfully exclaim that they are not using their own money, rather “someone else’s” money. This is a volatile place to put […]

Corporate Debt Coming from the corporate world, I can tell you of faulty thinking firsthand. During the boom and subsequent bust of the 90s, a common practice was to make large purchases via leasing contracts. Virtually everything was leased. Fleets of trucks, manufacturing equipment, buildings, and so on were all leased instead of purchased outright. […]

Corporate “Debt-Free” One of the most successful companies ever to grace planet Earth completely debt free? If debt is so good and provides so much so-called tax relief, why is the company that produced the richest man in the world debt free? Of course, I am talking about Microsoft, which has no debt and more […]

Summary Use the information I have provided in the previous blogs to think about paying cash. If you don’t have the cash, don’t make the purchase! Use the “cash paying” model of these companies to improve your own personal family financial balance sheet. Perhaps you have made some mistakes in the past. Yes, you must […]