How to Use Acquired Debt to Your Advantage

Debt can be an unbelievable tool to accelerate your wealth but can also be a catalyst for stress and financial turmoil.

- Paul Roux

Is debt good or bad? First, it depends on what you do with the borrowed money—what you spend it on. Second, it depends on how much you are paying for it in the form of interest.

Why debt is mostly bad:

Lower disposable income: Imagine acquiring a car loan of R250,000 with a monthly installment of R5,000. You have to pay maintenance and insurance of roughly R2,000 per month. Your disposable income decreases by R7,000 per month.