good debt vs bad debt - what's the difference?
TRANSCRIPT
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Welcome to the Welcome to the GPF Mortgage GPF Mortgage Q & A SeriesQ & A Series
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Good Debt vs. Bad Debt - What's the Difference?
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If you've ever struggled to keep up with all those darn payments - including the credit
card and car payments …?
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you'll want to tune in to this important information…
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More and more people are getting swallowed up by debt.
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One of the keys tofinancial independence is to get rid of your
bad debt and acquire good debt
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Bad debt is debt that makes you poor, such as credit card debt, car loans, etc.
- this is consumer debt.
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Good debt is debt you acquire that actually works for you
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The best example of good debt is a home loan on a rental property that throws off
positive cash flow every month
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Good debt is money that you borrowto purchase assets that put money in your
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5 Steps to Eliminate Your Bad Debt and Acquire More Good Debt
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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.
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Step 2 - Make a list of all your consumer (bad) debts.
.
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This includes each credit card, car loans, and any other
bad debts you have acquired.
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Step 3 - Refinance your home loan to consolidate your
high interest debts.
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Chances are you've built up enough equity in your home to pay off your high interest credit
cards and consumer loans..
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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 topay off bad debts at lower
interest rates.
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Step 4 - Explore the option of using additional equity in your home to increase
cash flow..
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After you consolidate your bad debts you may still have equity left over to invest in a
secure cash flow producing asset.
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Step 5 - Pay yourself first. Put aside a set percentage
from each salary deposit or each payment you receive
from other sources.
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Deposit that money into aninvestment savings account. Once your
money goes into the account, NEVER take it out, until you are ready to invest it.
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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.
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By adopting this as aconsistent habit you will be out of the Rat
Race faster than you ever dreamed!
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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