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29-11-2011, 09:04 AM
Whether a debt is good or bad is subjective.
I find it quite interesting that Ms Teh Hooi Ling's anecdotes were entirely on leverages made on equity betting. Debts can be on business deals, property investments as some has pointed out, etc.
Personally, I had some scholarship money which I did not used to pay down my uni fees upon graduation. Instead, I paid the 2.6% and threw the money into SPH yielding near to 6% in three tranches, 2 at $4, 2 at $3.80 and 2 at $3.14. On hindsight, the debt was good debt for I had paid it down slowly at $339 per month.
As Cookieguy said, debts should always be well managed, be it being regarded as good or bad.
I find it quite interesting that Ms Teh Hooi Ling's anecdotes were entirely on leverages made on equity betting. Debts can be on business deals, property investments as some has pointed out, etc.
Personally, I had some scholarship money which I did not used to pay down my uni fees upon graduation. Instead, I paid the 2.6% and threw the money into SPH yielding near to 6% in three tranches, 2 at $4, 2 at $3.80 and 2 at $3.14. On hindsight, the debt was good debt for I had paid it down slowly at $339 per month.
As Cookieguy said, debts should always be well managed, be it being regarded as good or bad.
http://wealthbuch.blogspot.com
-- Where I blog about matters on finances
-- Where I blog about matters on finances
