Debt

Many people say that the power of debt is a good thing. Under certain circumstances I will agree that debt can be a good thing and that it can help people out in a time of need.

Debt is not a toy; and it should be used with extreme caution. The interest that people pay to creditors is incredible. The interest rates on the majority of cards are higher than the highest return the stock market has experienced.

With investments you invest in hopes of receiving a nice return, with a credit card you pay the creditor an interest rate most investors would die for.

With real estate investments one needs to really know what the market is like in his/her area. What is the average time it takes to flip the house. What is the average time it takes to find a renter. What is the going rate for rentals. If you have done your due diligence and still feel right about buying a house, buy a house that you can manage. Do not take a loan out for a house that is too much for you to handle if your were to loose your job.

Think first, dissect it, and then put it back together; and if it holds together as if it were still new then go ahead and do it.