Topic 2: “Good Debt” : A Myth!
Dilemma – Something with which we deal every day, very moment. Is this fast rather fastest moving life, there is a constant conflict with which we live! As the definition of the word Dilemma says, a situation where one has to make a choice between two things. Lay man calls it confusion, some says problem, few address it as a puzzle and here we say Dilemma. One of such dilemma is choosing between good and bad. While we are talking about this, who decides good or bad? Is there anything called as an “IDEAL”? And if does exists, who decides it? Everyone has their own ideals. Mine would be differing as that of yours. Yours would be differing than someone else! So, is idealisiam a Myth? While talking about myths, we stay in a country with lots of myths. One such in today’s era in a financial growing country is about the debts. About the Credit score now and the impacts of debts on it.
So what is a good debt or a bad debt? Rather, is there any categorization about debt as good or bad? Can a negative thing be categorized as good or bad? Like a good negative or a bad negative? It’s an illusion. A dilemma with which we all deal. Good debt or a Bad debt. A Debt is a Debt. You can’t be categorizing it as Good or bad. The whole point here what we are talking about is A Myth many people are living with. A good Debt as they say is the phenomena where one increases their income and net worth. But with what? A DEBT? Again a myth! We check here the finances and the effect of them which would hamper our score and make our future possibilities of taking any credit. There is always a solution for all the situations!
Let us first know what is called as a good debt? What does is comprises of? Few examples of good debt are Education, Real estate, Investment, or a small business ownership. But, how can you expect a building to stay tall and strong forever without a pillar? Risk is a thing which everyone wants to take, to grow taller and faster. But without a Base? Without roots? How can you completely believe in something which is nonexistent? Of the examples, mentioned above; there is no future guarantee of it being successful! You would like to say that in this case should we not take a risk and keep on working like a donkey but not as a Cheetah? The answer is No! Risk, Calculated risks, volatile risks, Nonexistent risk or Forecasted Risk, is all a stepping stone towards the progress, but it in itself is not the final peak. When taking a risk in a financial stepping stone of life, we gotta check on every possibility. No building is made in one go! We all make mistakes and that’s the proof of trying. But, what we do would definitely make an impact on our Credit score. As a debt which we face if turned otherwise, will badly impact on everything which is built till date. Your reputation, your credibility and of cousre your CIBIL score. With considering good debt, let us look at the other side of it. The repercussions. With education, it’s essential to select a perfect path. Coz it’s not just the degree that matters but also the talent and hard work. Degrees won’t definitely always get the expected returns. Real estate and Investment both are highly volatile and can make or break one’s whole future. And a business will always have high risks or making diamonds from the coal being like coal forever.
So, to sum it up, here we say that it’s not about not being in a dilemma. Not dealing with Risks. Not taking credits. Not thinking about better shining future. But it’s all about making that right move in the perfect direction of taking risk, cracking that dilemma, utilizing best of the credit, making into the most shining star! But again A debt called a “good debt” is a Myth as a debt will always take the freedom at some level. Investing in good debt will not come with certified best returns!
Source:Ekta Gala - Financial Writer
So what is a good debt or a bad debt? Rather, is there any categorization about debt as good or bad? Can a negative thing be categorized as good or bad? Like a good negative or a bad negative? It’s an illusion. A dilemma with which we all deal. Good debt or a Bad debt. A Debt is a Debt. You can’t be categorizing it as Good or bad. The whole point here what we are talking about is A Myth many people are living with. A good Debt as they say is the phenomena where one increases their income and net worth. But with what? A DEBT? Again a myth! We check here the finances and the effect of them which would hamper our score and make our future possibilities of taking any credit. There is always a solution for all the situations!
Let us first know what is called as a good debt? What does is comprises of? Few examples of good debt are Education, Real estate, Investment, or a small business ownership. But, how can you expect a building to stay tall and strong forever without a pillar? Risk is a thing which everyone wants to take, to grow taller and faster. But without a Base? Without roots? How can you completely believe in something which is nonexistent? Of the examples, mentioned above; there is no future guarantee of it being successful! You would like to say that in this case should we not take a risk and keep on working like a donkey but not as a Cheetah? The answer is No! Risk, Calculated risks, volatile risks, Nonexistent risk or Forecasted Risk, is all a stepping stone towards the progress, but it in itself is not the final peak. When taking a risk in a financial stepping stone of life, we gotta check on every possibility. No building is made in one go! We all make mistakes and that’s the proof of trying. But, what we do would definitely make an impact on our Credit score. As a debt which we face if turned otherwise, will badly impact on everything which is built till date. Your reputation, your credibility and of cousre your CIBIL score. With considering good debt, let us look at the other side of it. The repercussions. With education, it’s essential to select a perfect path. Coz it’s not just the degree that matters but also the talent and hard work. Degrees won’t definitely always get the expected returns. Real estate and Investment both are highly volatile and can make or break one’s whole future. And a business will always have high risks or making diamonds from the coal being like coal forever.
So, to sum it up, here we say that it’s not about not being in a dilemma. Not dealing with Risks. Not taking credits. Not thinking about better shining future. But it’s all about making that right move in the perfect direction of taking risk, cracking that dilemma, utilizing best of the credit, making into the most shining star! But again A debt called a “good debt” is a Myth as a debt will always take the freedom at some level. Investing in good debt will not come with certified best returns!
Source:Ekta Gala - Financial Writer