DEBT057 Debt: the good, the bad and the ugly (481 words)

This detailed article outlines the positive and negative effects of debt in the areas of personal consumption and investment.

The opinion of many people towards debt can be best summed up in the often quoted line from Shakespeare, ‘neither a borrower nor a lender be.’ Yet others will embrace debt as one of the most important tools in their investment arsenal. Of course, successful debt management comes down to whether you control your debt or you let it control you.

Some see debt as their friend, allowing them to purchase everything from household goods to investments that they would otherwise not have been able to enjoy with their own money. These people seek out the lender that will give them the most credit, on the best terms and become the winner by leveraging.