Comments on: The Lexicon of Debt: Is Debt Evil?

By: 5 Investing Challenges for the Next Decade | Balance Junkie

5 Investing Challenges for the Next Decade | Balance Junkie — Thu, 20 May 2010 12:08:49 +0000

[...] won’t spend a lot of time on the debt issue as it’s been covered very well here and elsewhere. I’ve written many times that [...]

By: 2 Cents

2 Cents — Tue, 09 Mar 2010 12:37:46 +0000

Thanks. Welcome aboard!

By: Christina

Christina — Tue, 09 Mar 2010 04:41:03 +0000

Nice to hear you really do communicate with your followers, now another link is added to my list of “following blogs”. I’ll be waiting for your next interesting and informative article. Kudos to you.

By: 2 Cents

2 Cents — Sun, 07 Mar 2010 03:54:18 +0000

You’re right. I think it really is a matter of how we choose to use debt. Thanks Christina.

By: Christina

Christina — Sun, 07 Mar 2010 03:05:56 +0000

I don’t think debt is Evil. It only becomes a negative issue when we start abusing it. There’s nothing wrong with being indebted financially if we really have to pay-off something really important. It’s our character on availing loans, usage of card etc. that somehow give an impression that debt is evil where in fact it’s us that put it in that situation. Just an opinion. Very well written and I really do agree with you.

By: Money Hacks Carnival #106 – The Savvy Saver Edition | Living Richly on a Budget

Wed, 03 Mar 2010 04:45:58 +0000

[...] Cents presents The Lexicon of Debt or Is Debt Evil? posted at Balance Junkie. Is debt evil? I say yes, but check out this take on the meaning of [...]

By: Why Is Personal Finance a Hot Topic Now? | Balance Junkie

Why Is Personal Finance a Hot Topic Now? | Balance Junkie — Fri, 26 Feb 2010 16:13:14 +0000

[...] increasing amount and duration of debt. This has almost come to be seen as normal and healthy. In The Lexicon of Debt, we examined the idea of debt as a tool to be used wisely and sparingly. Many have forgotten this [...]

By: Doctor Stock

Doctor Stock — Tue, 23 Feb 2010 03:59:54 +0000

Depending on your housing environment, debt is sometimes inevitable and a very positive tool toward gaining market share. I bought property with significant debt and within 2 years, had an additional 50% increase in the property value, which really put my debt into perspective and increased my net worth significantly, thanks to debt. .-= Doctor Stock´s last blog ..Stock Screen for TCK (Teck) =-.

By: Awareness Home Funding

Awareness Home Funding — Mon, 22 Feb 2010 20:49:42 +0000

I agree that debt is not a good or bad thing, but the personal responsibility behind the debt that defines the role. As a lender, we do help our clients incur debt. However as also a responsible (key word here) lender, we help our clients to live within their means and not incur more than what they can afford. How would we be helping our clients if we painted an unrealistic picture and saddled them with a debt load they could never satisfy. The idea is to help our clients get that dream home, not an unrelenting nightmare. Sometimes you just need to refocus the dream.

By: 2 Cents

2 Cents — Mon, 22 Feb 2010 18:59:36 +0000

That sounds like a really healthy approach to debt. Thanks for your input Sandra!

By: Sandra

Sandra — Mon, 22 Feb 2010 18:39:22 +0000

I was brought up with the notion that debt is a bad thing to have. My parents never bought anything unless they had cash to pay for it (this included cars, houses, etc.). I currently have debt, a mortgage, but hopefully it’ll be paid off in a few years. It all comes down to personal responsibility. If you made the calculation and is confident that you can pay the mortgage/loan off quickly, than it’s okay.

By: 2 Cents

2 Cents — Mon, 22 Feb 2010 17:38:55 +0000

I agree with your good debt/bad debt distinction. In fact, many businesses large and small would never get off the ground without some kind of debt. I would not own a home without debt. I do, however, think that debt has been both overused and misused by individuals, businesses and governments. Still, if it were at all possible, wouldn’t you rather be able to pay cash for that BMW (unless it was financed at 0%)? As Ken said above, debt should be handled with care.

By: Dave

Dave — Mon, 22 Feb 2010 17:24:48 +0000

I don’t think debt is a bad thing. Too much debt or not controlling your debt is a bad thing.
It would have taken me longer to accumulate my current net worth if I did not use debt to finance my operations and would not have the passive income I have now without using debt.
I also think that the definition of good debt and bad debt is wrong. Good debt is when you go into debt that will produce some type result. Bad debt is going into debt for your personal needs that you cannot afford.
I.E. sales person goes into debt to buy a BMW for their job. Is that good debt or bad debt?
If their clients were high rollers, then this could be seen as good debt. Because pulling up to the private golf course in a beater just does not get the clients. If their clients are not high rollers and this is just to impress friends and family then this would be bad debt.
I have seen both cases. The friend that needed the luxury car to get clients and the friend that was just trying to impress.

By: Ken

Ken — Mon, 22 Feb 2010 15:24:15 +0000

Debt is abused. It has been so easy to access and justify that having it is just a ‘way of life.’ My wife and I have too much of it because we decided to buy things on payments instead of saving for them. Having debt is a choice that we need to be careful about.