Bad debt is debt that makes you poorer. I count the mortgage on my home as bad debt, because I'm the one paying on it. Other forms of bad debt are car payments, credit card balances, or other consumer loans.
An example of good debt is the debt on the apartment houses I own. That debt is good only as long as there are tenants to pay my mortgages. If tenants stop paying their rent, my good debt turns into bad debt.
Deflation can be particularly dangerous when a financial system is shaky, with household and corporate balance sheets in poor shape and banks undercapitalized and heavily burdened with bad loans.
I have no interest in bailing out anybody, quite frankly, and I think banks have to suffer every dollar of loss if they make a bad loan.
The farmer's way of saving money: to be owed by someone he trusted.
A habit of debt is very injurious to the memory.
It's time to start thinking differently about money and debt and start the healing process - and the process toward wealth and freedom. 'Freedom from Bad Debt' can get you started.
Bad debt is sacrificing your future day needs for your present day desires.
I lost my computer business when I was 29 because I gave credit to firms I didn't investigate. I lost my house and had to move back in with my parents and then I lived in an office for six months.
Gold has intrinsic value. The problem with the dollar is it has no intrinsic value. And if the Federal Reserve is going to spend trillions of them to buy up all these bad mortgages and all other kinds of bad debt, the dollar is going to lose all of its value. Gold will store its value, and you'll always be able to buy more food with your gold.
He that goes a borrowing goes a sorrowing.
My worst investment decision so far is to lend money to friends. So far, it has all come to zero.
One of the greatest disservices you can do a man is to lend him money that he can't pay back.
Good debt is a powerful tool, but bad debt can kill you.
