Good debt vs bad debt - What's the Difference?

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Good Debt vs. Bad Debt - What's the Difference?


If you've ever struggled to keep up with all those darn payments - including the credit

card and car payments …?


you'll want to tune in to this important information…


More and more people are getting swallowed up by debt.


One of the keys tofinancial independence is to get rid of your

bad debt and acquire good debt


Bad debt is debt that makes you poor, such as credit card debt, car loans, etc.

- this is consumer debt.


Good debt is debt you acquire that actually works for you


The best example of good debt is a home loan on a rental property that throws off

positive cash flow every month


Good debt is money that you borrowto purchase assets that put money in your

pocket


5 Steps to Eliminate Your Bad Debt and Acquire More Good Debt


Step 1 - Stop accumulating bad debt. Whatever you purchase

via credit cards must be paid off in full at the end of each month.

No exceptions.


Step 2 - Make a list of all your consumer (bad) debts.

.


This includes each credit card, car loans, and any other

bad debts you have acquired.


Step 3 - Refinance your home loan to consolidate your

high interest debts.


Chances are you've built up enough equity in your home to pay off your high interest credit

cards and consumer loans..


As your home loan approval expert, I can help

determine how much equity is available and how much

you can save by increasing your home loan balance topay off bad debts at lower

interest rates.


Step 4 - Explore the option of using additional equity in your home to increase

cash flow..


After you consolidate your bad debts you may still have equity left over to invest in a

secure cash flow producing asset.


Step 5 - Pay yourself first. Put aside a set percentage

from each salary deposit or each payment you receive

from other sources.


Deposit that money into aninvestment savings account. Once your

money goes into the account, NEVER take it out, until you are ready to invest it.


Now - instead of just paying creditors - you're paying yourself for only one type of

purchase: assets that give you positive cash flow each month.


By adopting this as aconsistent habit you will be out of the Rat

Race faster than you ever dreamed!


I look forward to hearing about your success stories as you apply these financial

principles to your life.

Your trusted home approval expert,Zulika van Heerden

"Cutting Your Costs. Fighting Your Battles"0861-106-204

www.GPFMortgage.co.za

Economy & Finance

Good debt vs bad debt - What's the Difference?