How to get rid of debt? You want to get rid of debt??

Yes, this is the question...do you want to get rid of debt? My answer is yes AND no!

First answer, YES, you should get rid of bad debt, so that you don't owe anybody money, and save on interest.

We know interest will keep compiling the moment you owe money to banks, companies, or even friends (who wants to charge interest on you!).
What do we do to get rid of debt? 
Cut your credit cards? Learn to be stingy? Run away from the country? Hmmm, none of these...

All we need to learn is to manage your credit cards, and I have a post just to talk about this
http://wealthstreetjournal.blogspot.com/2010/12/how-to-use-your-credit-card.html

And start budgeting yourself. I should ask you, at the moment what do you own? A car loan, and some personal loan for business purposes? Ok, regardless of what you have, always make sure that you have enough balance to pay back these debt each month. If you can't manage to pay back, then don't even borrow it in the first place!!


My second answer, NO we don't get rid of good debt. What is good debt?
Some of you may have borrowed money to finance on your mortgage or property loan. Well, these are assets, not liabilities...As year goes by, inflation rate will increase, and it will help to increase the value of your property.

1. Therefore if you purchase a house at $100,000
2. After paying deposit of $20,000; you need to borrow additional $80,000 for 20 years 
3. Assuming next 20 years it appreciates to $180,000.
4. Plus minus interest of loan, you could reap a $40,000+ nett if you sell it after 20 years.

Now this is a good debt, you borrowed the money to create more value to you in the future.
And bad debt? Bad debt is those money you borrowed that's gonna drag you further to poverty. Bad credit card management is one great example.