Why “Get out of Debt” is Obsolete Advice
Let’s take a refresher on what these two types of debts are.
Good debt: Good debt is money leveraged to make more money. This is debt that someone else pays for you.
Bad debt: Bad debt is consumer debt and money spent on consumable items. This is debt your pay for.
It is a known fact that bankers want smart debtors as customers and not savers. Since a bank can take your dollar and magically create 20 or more dollars out of it, the bank has a high need for customers who want to borrow money. Why? Banks do not make money from savers. They make money from debtors.
Majority of people think that all debt is bad because they have not been trained to use debt properly.
For those who invest the time to learn how to use debt, knowing that there is good debt and bad debt is a useful idea.