Good Debt vs. Bad Debt: Building Wealth or Losing Money
Is debt helping you build wealth - or putting your business and financial future at risk?
In this episode of the Know Your Numbers Podcast, Chris McCormack breaks down the difference between good debt and bad debt and shares four important tests to consider before borrowing money.
Know Your Numbers Podcast • Episode 164
Learn how to evaluate the return on your debt, determine whether an investment can generate enough cash flow to cover its costs, understand the risks of personal guarantees, and assess your options if things don't go according to plan.
Chris also explores how debt can support real estate investments and business growth, while explaining why high-interest credit cards, risky equipment financing, and borrowing solely for tax deductions can lead to costly financial mistakes.
Remember: Debt should support your financial goals - not put your family, cash flow, or business at unnecessary risk.
Key strategies in this episode:
Why Debt Debate Matters
Ramsey Viewpoint Nuance
Four Debt Tests
Debt That Builds
Equipment Loans Reality Check
Slow Growth Cash First
Bad Debt Traps
Minimum Payments Enslavement
Whether you're a business owner, entrepreneur, or real estate investor, this episode will help you think more carefully about debt, manage financial risk, and make borrowing decisions based on real numbers instead of assumptions. We offer guidance at Better Books.
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