Daily Money Minute

Fotolia_54867638_XS_7“I’ve been broke, and I’ve been in debt, and broke is better.” ~Gary Reilly

Another theme I’ve covered before but again one which is worthy of a second outing. The problem with debt is that it can enslave you and it can become very stressful. If you’re not careful debt can very quickly reach levels where you’re then constantly worrying about how you will make your next repayment. Being skint is never easy of course but at least you don’t have to worry about making repayments to anyone else. It is true that we all need debt financing occasionally, to buy a house for instance. Secured debt is usually fine, assuming you don’t over-stretch yourself, because the rates of interests on repayments are usually fairly low. Certainly that is true in the current financial climate. Unsecured debt is a different ballgame altogether though. Usually it comes with very high interest rates and can quickly move from minor problem to major headache. Never borrow money for anything you can live without. In other words unless you absolutely cannot live without it, it is better not to borrow at all. Simple!

© Roy Sutton and Mann Island Media Limited 2013. All Rights Reserved.

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