Debt Always Brings Risk

Is there such a thing as good debt, or is all debt bad? Everyone has an opinion and views things a little different, and that's okay. In this video, we'll talk about our observations and how to live the most risk-free financial life.

We can ALL agree that there is some level of risk when someone borrows money. Debt means you borrowed money from somewhere or someone, but is is usually a bank or loan company. By doing this you are agreeing to pay back the loan with some sort of interest. This interest rate could be 0% and it could be as high as 25% or more (think of credit cards)! The payback is usually in monthly amounts and the lender expects you to pay this back every single month. That is where the risk comes in!

If you don't pay, then bad things can happen. Late charges, evictions, repositions, bad credit, and if left long enough, bankruptcy. Reasons sometimes you aren't able to pay the bill: you lose a job, your basic needs increase due to inflation, injury to yourself, death in the family, or the government decides to shut down the economy because of a health scare. All valid reasons and they become a priority over the monthly payments you borrowed for. Debt is a risk! When you don't have debt with monthly payments, then when those reasons above happen you can focus on that thing and not worry about creditors or banks calling. Being debt free with money in the bank changes a financial crisis into just a financial inconvenience. Work hard to get out and stay out of debt. It's the best way to keep risk at bay.

Inside the Ideal Life & Money Academy, we show our students how to get organized with their money so they can get on the path to Financial Freedom and start living their Ideal Lives. Come check it out FREE for 30 days and see how much progress you can make.