Morning Mr. Collier; I hope all is well with you. When you get a moment would you mind answering the below questions?

What’s the difference to you between having personal debt versus having business debt? Is either one justifiable? Why or why not?

Business Debt hopefully makes you money i.e. you are borrowing capital at “x” rate and investing in or buying something that will return you “x plus” i.e. something significantly greater. I say significantly greater because that obligation to repay is certain but the return you are seeking is speculative so I suggest including a margin for error because the future is full of surprises, not all pleasant! If it were certain, everyone would be doing it and the return would disappear.

Personal Debt is to support your lifestyle and beyond a home mortgage and modest car loan I suggest you avoid personal debt like the plague. I’m 65 years old and I have never, ever paid a penny of credit card interest in my life, never run a credit card balance; their interest rates are atrocious! Also, because the “driving off the lot” depreciation is so great on new cars, I only bought used cars for the longest time. These days, I carry no debt on my homestead or on my cars.

Closing Quotes:

“Rather go to bed supperless, than rise in debt. Buy what thou hast no Need of and ere long thou shalt sell thy Necessaries.” Benjamin Franklin, 1706-1790

“When you get in debt you become a slave.” – Andrew Jackson, 1767-1845, 7th US President

“Never spend your money before you have it.” – Thomas Jefferson, 1743- 1826, 3rd US President

“What can be added to the happiness of a man who is in health, out of debt, and has a clear conscience?” – Adam Smith, 1723-1790, Scottish economist, philosopher, and author

As always, I share what I most want/need to learn. – Nathan S. Collier