FAQs

Isn’t debt a bad thing?

It’s important to understand that there are different types of debt.

Three types of Debt:

Bad debt is a loan used to purchase things that depreciate such as cars, furniture, white goods, and which incur no tax deductions.

Tolerable debt refers to the type of debt we incur when purchasing an item that appreciates in value but offers no tax relief. The family home falls into this category.

Productive debt is used to buy appreciating items (ones that are worth more in time) that also attract tax relief. Investment properties fall into this category.

If understood and used wisely, debt is a powerful tool that can create wealth.