Indebtedness - good or bad for you?

The dictionary defines a debt as a condition or state of owing something to another. This indebtedness may simply be of a perceptive nature or becomes legally binding in accordance with the laws of a people living as a commune. An indebtedness becomes an obstacle in your perceptive reality if such is morally and legally binding in nature. But debts can be productive as well, especially as a growth structure of our economy.

The guidelines to consider before incurring a debt - will it be for an advanced non-productive personal expenditure? Or the means to effect a value-added outcome? Such may be the case as business debts, where other people's money may be used as a leverage to generate and maximize productivity, hence a productive debt.

People often confused personal consumptions as a productive indebtedness. The tendency to incur debts for a personal consumption as if it can be leveraged as a value-added activity by delaying payment, actually increased expenditures as interest is charged for the cost of owing money and indubitably be compounded to the initial debt. Not unless one had some magical tricks to vanish from such or somehow inherit an indefinite debt moratorium. Bottom line gauge - if you earn before spend or the other way around, does make or unmake your economic stature.

Do read my article on the Fallacy on poverty