Tag Archives: Debt

Debt is Financial Cancer

Financial sovereignty is attained by understanding that debt is financial cancer, eating away at your future

There are only four situations that I can condone the use of debt:

1) Purchase of a home

It is very difficult to just show up and pay cash for a home, especially as a first-time buyer.  However, you do not want to be over leveraged and end up underwater with the loan if housing prices ever take a dive.  I recommend the 20% downpayment, or at least enough to be sure that you do not have to buy mortgage insurance.  Also, be sure that you could handle a raise in interest rates if you intend to take a variable rate mortgage.

Continue reading