September 19, 2013 Wealth

Good Debt and Bad Debt – Be in the Driver’s Seat!

Good Debt and Bad Debt – Be in the Driver’s Seat!

Many of us do not believe it is possible to be debt free.

The truth is the truly wealthy don’t have debt. Consumerism and the escalating pricing of the past is a symptom of a much deeper issue in our culture. In the United States the only place you can learn how to handle money is at home or if you strike out on your own in search of knowledge. It is not something taught in grade school at the time it really is best to begin.

When I first started in mortgage and personal lending in the early 80’s (which really wasn’t that long ago 🙂 rates began at 12-14%. This didn’t seem to be as much of a struggle for people as the lending serviceability requirements (the amount of debt payments vs your income). At that time the serviceability limits were: your mortgage could not be more than 32% of your income and your total debt portfolio (car loans, credit cards, etc) could not be more than 36% of your income. By the time the banking industry was crashing the total allowable serviceability was at 60%. It’s no wonder we were in trouble even before the markets crashed.

So if you were not brought up in a home where money was talked about (in a positive way) or entrepreneurship was a way of life then it’s up to you to take the bull by the horns and go in search of knowledge.

I can assure you it is a possibility to be debt free. There is good debt and bad debt – do you know the difference? Debt, like money, is also a tool for creating wealth and there are strategies for when and how to use it well. Be in the driver’s seat. When it comes to debt, don’t let it control you! The good news is it doesn’t matter where you are starting from you can eliminate debt and take control of your finances.

Contact Sue for more info on good debt and bad debt.
In Abundance,


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