Good debt vs bad debt - What's the Difference?

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Good Debt vs. Bad Debt -
What's the Difference?

If you've ever struggled to keep up with all
those darn payments - including the credit
card and car payments …?

you'll want to tune in to this important
information…

More and more people are getting
swallowed up by debt.

One of the keys to
financial independence is to get rid of your
bad debt and acquire good debt

Bad debt is debt that makes you poor, such
as credit card debt, car loans, etc.
- this is consumer debt.

Good debt is debt you acquire that actually
works for you

The best example of good debt is a home
loan on a rental property that throws off
positive cash flow every month

Good debt is money that you borrow
to purchase assets that put money in your
pocket

5 Steps to Eliminate Your Bad
Debt and Acquire More Good
Debt

Step 1 - Stop accumulating bad
debt. Whatever you purchase
via credit cards must be paid off
in full at the end of each month.
No exceptions.

Step 2 - Make a list of all your
consumer (bad) debts.
.

This includes each credit card,
car loans, and any other
bad debts you have acquired.

Step 3 - Refinance your home
loan to consolidate your
high interest debts.

Chances are you've built up
enough equity in your home to
pay off your high interest credit
cards and consumer loans..

As your home loan approval
expert, I can help
determine how much equity is
available and how much
you can save by increasing
your home loan balance to
pay off bad debts at lower
interest rates.

Step 4 - Explore the option of using
additional equity in your home to increase
cash flow..

After you consolidate your bad debts you
may still have equity left over to invest in a
secure cash flow producing asset.

Step 5 - Pay yourself first. Put
aside a set percentage
from each salary deposit or
each payment you receive
from other sources.

Deposit that money into an
investment savings account. Once your
money goes into the account, NEVER take
it out, until you are ready to invest it.

Now - instead of just paying creditors -
you're paying yourself for only one type of
purchase: assets that give you positive cash
flow each month.

By adopting this as a
consistent habit you will be out of the Rat
Race faster than you ever dreamed!

I look forward to hearing about your
success stories as you apply these financial
principles to your life.
Your trusted home approval expert,
Zulika van Heerden
"Cutting Your Costs. Fighting Your Battles"
0861-106-204
www.GPFMortgage.co.za

Good debt vs bad debt - What's the Difference?

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