debt?, page-10

ra1ders,

A short answer to what is really a more complex question;

IMO there are three forms of debt

1. Good debt - debt that has both an income (return) & a tax benefit (legally) such as an investment,

2. Bad debt - debt that has no form of return and no tax benefit such as debt on credit cards, personal loans, even the family home mortage, and

3. Best debt - no debt at all!

Servicing the debt is in fact the problem for a great many in our beautiful country - cashflow. Having and using equity in a home mortgage is one thing however if you don't have the cashflow ability to service that debt then it's very dangerous indeed.

I hope this helps

WC8