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RE: Difference Between Good Debt & Bad Debt With Examples

in LeoFinance4 years ago

It is not advisable to make a loan to pay another loan. It is just like moving from "Frying pan to fire".

Talking about debt, I remembered something that occurred some weeks ago. There was a brand new watch that was released and I am the guy who loves gadgets. I wanted to get it so badly that I took a loan from a friend of mine. Somehow, Personal needs came up and I had to spend my loan on it. I literally spent the whole money on something else.

I was now in the situation of maybe raising the money again to buy the watch or using the money I raised to pay back the debt. I had to think twice about it, then I realised that there is no way that wrist watch can generate any income if I buy it.

It would just be on my hand for fashion's sake and if I was to sell it, I would not sell it for a good value...

I made the best decision by giving my friend back his money and not buying that watch. I borrowed the money at the right time, because it came when an important need more than the watch came up. If it came after the watch, I would have been in a big mess.

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Great job done brother. You have taken a wise decision. Don't borrow unless you are spending it for something that would provide value in life. I used to given in for my materalistic needs, while I should have spent more on education and travel.

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Hmm that's true.. Nice profile picture. It rocks bro!

Haha. Thanks bro. 😍😍

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