Debt as a tool?

(this post is a feed post from my comments on reddit)


Well the simplest real world examples are –

1 credit card – you use credit to buy and replay – so it can be good since it’s an advance on payment but the moment you don’t pay back you get in trouble due to interest that you need to replay
2 house mortgage- given the lump sum cost most ppl have to use a mortgage which means you can replay the lump sum over time

So debt is a tool for liquidity allowing you to upfront payment. The assumption is you deploy this on assets that will build value allowing you to replay the debt, but of course the issue comes from if you buy a liability or an asset that has depreciated in value

Debt as a tool?
by inbusiness

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