Debt is bad! At least that's what most people think. Are they correct? If not, is debt good then? Well, it really depends. Whether debt is good or bad depends on the reason for incurring the debt, and whether you can afford to repay it.
Debt is a complex concept. If you use debt carelessly and irresponsibly, you'll get into financial trouble. On the other hand, if debt is used in a calculated and intelligent manner, it can help you build tremendous wealth. Therefore, you must be able to distinguish between good debt and bad debt if you want to be successful financially.
What is the difference between good debt and bad debt?
We are currently facing tough economic times. We get bombarded by overwhelming confirmation of rising debt and unemployment when flipping through the pages of newspapers, watching the news over television or listening to the news on radio every day. Governments all over the world are facing challenging times in their quest to address the country's economic problems. People are extending their retirements due to zero or insufficient savings. And more bad news seems to be added by the various media daily!
What can you do when confronted with such tough times? You can’t control what the world will become, but you certainly can control how you manage your finances. Hence, taking action to secure your financial future should become one of your top priorities in life. While money doesn’t grow on trees, it can certainly grow if you save and invest prudently. Saving and investing are keys to growing your wealth in order to ensure your future financial success.
According to the Monetary Authority of Singapore, more than 7.5 million credit cards (including supplementary cards linked to the principal cardholder's cards) were issued in Singapore in 2010. With market experts estimating eligible cardholders to be around 1 million, that would work out to each eligible cardholder owning 6 to 7 credit cards.