Is Debt Always A Bad Thing?


Debt is not something that most people want in their lives. In an ideal world, we would all have huge, endless sums sitting in our savings accounts and would never have to contemplate debt at all.

The reality is, of course, that the vast majority of people need debt to get ahead in life – and even wealthy people will happily take on debt, as it can sometimes result in cheaper financing for business purposes.

So, it would be unfair to call all debt ‘bad.’ Sure, debts can turn bad, but they can also be used to improve your life. Here are some examples of life situations where debt is almost a necessity, and with proper planning and attention, will never be a bad thing.

College education

The longer you stay in education, the greater your chances of success in your career and the higher your earning potential. It’s as simple as that – and over the course of your working life, you are likely to earn a significant return on investment. However, a college education is also expensive – prohibitively so for the vast majority of the population. So, most people have to borrow to go to college. Without the ability to get into debt, many would miss out on the experience altogether, and never have the earning power that a college education can give. Look for scholarships and grants to offset the cost.


Impact on your earning power

On the subject of earning power, think about the cost of your loans. When it comes to getting loans with bad credit, it can be more expensive than if you had a good credit score. Your loan options will be dramatically reduced, for a start, and at best, the loan repayments will take a bigger slice of your wages. At worst, you might not be able to earn anything at all – if you need a loan for a car to drive to work, for example. So in this case, getting into responsible debt is a good thing – it’s a tool you can use to cut your expenses, buy cheaper debt, and, potentially, earn more money.

Starting a business

Starting a business off of your own back is something that is a dream for many people – but again, it’s going to cost money,. Unless you have significant savings put aside, there is a good chance you will have to borrow the money. With a little luck and a lot of hard work, you can turn a debt to the bank into a viable business that earns you a huge profit – and potentially, extreme wealth. And all because you decided to take out a small business loan.

Happy Attractive Hispanic Woman Holding Sold Sign and In Front of House.

Buying a home

Finally, most people will never be in the position where they can pay for a property with cash. As a rule, we all rely on mortgages and home loans to get us on the ladder. And once we pay off those loans, the house is there for us to do what we want – and reap the rewards from all the profits it has made over the past couple of decades or so.

So, as you can see, not all debt is bad. Certain types of borrowing can give you a significant lift up in many different areas of your life – just make sure you don’t allow those debts to start becoming a burden.

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About Dequiana Jackson

Dequiana Jackson, CEO of Inspired Marketing, Inc., is a small business marketing coach who teaches women entrepreneurs how to monetize their message so they can make more money from their expertise. Dequiana is the author of Know Your Business: How to Attract Ideal Clients & Sell More and runs the award-winning blog,

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