17-11-2011, 12:05 AM
Yes, good ol' dennis from wall straits.
I find him pretty ok, he dishes out some good advice.
But I think he was a bit too strong in his own views and that caused a lot of unhappiness between him and other folks.
Onto good debts and bad debts.
Good debt :
Money borrowed to generate a higher rate of return.
Bad debt :
Money borrowed to generate zero or negative returns.(think gambling)
On paying down your mortgage.
It's to do with personality. Some people just cant live normally knowing that they are in debt.
For this group, if they do not know where else to put their money, it is best to pay it down.
Others thrive on debts/risks, the more the merrier.
Debts means leverage, the aim of this is to magnify your profits.
For the ambitious folks, there is no other way than to take on more debts
to start/grow a business/make investments.
I find him pretty ok, he dishes out some good advice.
But I think he was a bit too strong in his own views and that caused a lot of unhappiness between him and other folks.
Onto good debts and bad debts.
Good debt :
Money borrowed to generate a higher rate of return.
Bad debt :
Money borrowed to generate zero or negative returns.(think gambling)
On paying down your mortgage.
It's to do with personality. Some people just cant live normally knowing that they are in debt.
For this group, if they do not know where else to put their money, it is best to pay it down.
Others thrive on debts/risks, the more the merrier.
Debts means leverage, the aim of this is to magnify your profits.
For the ambitious folks, there is no other way than to take on more debts
to start/grow a business/make investments.