You have to find the fastest way to pay off debt and stay out of debt!!! AJ covers the 4 types of debt we get ourselves into that can ruin our wealth building journey. The last one may not be all bad.
- Consumer Debt – This debt will eat your wealth and destroy your future. Any debt that is 100% avoidable is consumer debt.
- Emergency Debt – This debt is to be avoided at all costs. And is only acceptable if you ABSOLUTELY have no other options.
- Gamble Debt – Any debt used to try and gamble on a positive outcome. This could be debt used to buy stocks, make investments or actually gamble away. Your future is not worth risking on gambles.
- Leveraged Debt – This is debt used to purchase an appreciating asset such as a home. All the information and calculations need to take place to ensure this isn’t a gamble. Once you’re sure about your purchase decision, this is the only acceptable debt to take.