due debt in the preceding year. Forty-four percent of these consumers reported being contac
Is debt good or bad?
Myth: Debt is okay if you’re using it as leverage for investments. It actually qualifies as “good debt.” Truth: Debt always equals risk, and it’s always dumb. Imagine if, when the COVID-19 pandemic hit in 2020, you’d been completely debt-free with no payments and a $20,000 emergency fund.
Can leveraging debt help you get rich faster?
So, while your calculator may say that leveraging debt can help you get rich faster, it doesn’t consider risk. But when you pay cash for everything, you don’t have to worry about that risk. Debt can hurt more than just your finances—it can also strain or even destroy your relationships.
