All my life one thing I have always tried to manage is debt because I have heard stories of how debt can ruin people’s lives but I have also heard how people use debt to save their lives from crumbling. We all know we have good debt and bad debt, people take loans for different reasons but based on what I have heard people say most people don't take debt for the wrong reasons.
Debt is not bad only if we are planning to use it for something right but most people plan to use it wisely and their plans did not work out which put them in a terrible situation and from there some of these people have to pay the debt for the rest of their lives. Just little percentage of people these unforeseen circumstances happened too but the reason people fail to use their well is because they don't plan well or did not do their research right.
Most people did not plan well because they just borrow money to start something new and most of these new things they did not know about it but because of desperation, they took the loan. We have those that are not even desperate at all but they did not do their research very well and they end up losing the funds. People are not ready to do the work but want to make money.
For these reasons, people are scared to use debt and they rather use their own hard-earned money because with that they can still have some sought of peace if their plans don't work but the fact still remains that even if they use their money they will still end up losing it which is not good for any entrepreneur and at the end of the day it bad for the business.
Conclusion
Debt is not bad and in fact, we have good debt but what differentiates these two is the outcome of debt, we must always use debt for the right reasons like using it to make our business better or buy assets that will fetch us money and not the one that will take money from us or a liability.
Thanks for your time.
