I've taken on some debt (about $15k) to get through a tough period of my business after years of being absolutely terrified of having any debt at all (even credit card). I've been giving this some thought.
Debt seems valuable if you're using it to increase your chances of making more money in the future. It's way less valuable if you're using it to support a lifestyle that you can't handle. It's a form of power but it's also addictive and therefore dangerous – you can always go a bit deeper into debt until at some point you find your back against the wall and now you need to fight without taking a step back.
It's quite sobering to get here.
Posted by zoozla
8 Comments
Don’t use debt when you’re speculating. Only when it’s almost guaranteed success.
I hope the best comes to u
See this moment as the final straw where you do every last resort thing you can think of to make it work, don’t stagger, don’t wait. Do that thing you would consider as the last resort now.
I like to think of it as being a mix of having balance and foresight, and knowing that it is a crucial stepping stone to getting to the point you desire.
I use consumer credit to fund my business.
Well as always loans/debt can be good but it all depends if you can spring back.
I did that a few years back. Then sold my land to payback the loans, that business took its fair share of delay to yield.
That was my fault, but trust me, majority of business in the world take loans at some point and most leverage that fantastically.
It’s your calculation, since you have mentioned it, you probably are good at handling it.
It’s a tough decision, but debt can sometimes be a necessary risk for growth. What’s your long-term plan for handling the debt? Have you thought about ways to balance the financial pressure with your business goals?