In the book entitled Rich Dad, Poor Dad we are educated in the difference between good debt and bad debt. Unfortunately, we are brought up with lack of financial education so are unable to distinguish between the two types of debt.
All debt is classed as bad as we usually spend money on things that only depreciate or have no long-term value. Small incidentals like clothes and entertainment give us the quick fix but we end up paying for it over time as most credit cards in the UK are not cleared on a monthly basis and therefore become a liability to be paid each month.
Even the house we live in whilst seen as an asset, is in fact a liability, as the mortgage payment has to be paid each month, as this asset is actually the property of the Building Society until you have paid them off!
This feeling of the burden of debt both mortgage and credit cards only perpetuates the feeling of being in the cycle/rut but how do I break out of it?
Just take 5 minutes to re-evaluate exactly where you are today, and where financially you would like to be in the future. Then contact us to see how we can help.