Friday, February 1, 2008

List of Negative Debt Effects

Debt doesn't only take your money and savings away. There is much more to it than that. Be smart, realize what debt actually takes away from you, by browsing this list of negative debt effects:
  • Freedom: when you are full in debt, you are doing something that you don't really want to do, but need to. Therefore debt takes your freedom away.
  • Cash Flow: well, this one is obvious. When you are in debt, you don't have enough liquid assets, such as cash, to pay for your expenses.
  • Opportunities: when various financial opportunities arise, you are not able to take the full control of it, due to you debt.
  • Time: you loose your time to work in order to repay the loans, when you could be doing anything else in the world.

In conclusion, it's all about the opportunities cost - what you loose when you have a debt.

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