Use Debt as a Springboard, Not a Shackle

Let’s get real about debt. I used to think it was a financial boogeyman—something to avoid at all costs. But when I took a leap to start my own business and own my real estate, I realized debt could be a powerful tool if you use it with purpose. 

Here’s my big lesson: Debt is only as good as the goal it serves.

A few years back, I took out a home loan to invest in rental apartments. For the sake of clarity, these were investment (rental) properties, not a home I wish to live in.Signing those loan papers felt like stepping into the unknown, but that was my springboard. It funded my asset column, diversified my investment portfolio, and the ease of payments meant I could build more paper assets as well as invest the rest of the funds in my business. The cherry on the top - I chose a plan that let me make early part payments at will without incurring any penalties whatsoever. That’s good debt—borrowing that builds your future.

Contrast that with a mistake I made early on: racking up credit card debt for a fancy phone and tab to “look the part.” Big mistake. Those 20% interest rates haunted me, and not a single soul cared, only I did to begin with. That’s bad debt—money spent on fleeting wants, not lasting value.

Here’s the takeaway: 

Use debt like a precision tool. Before borrowing, ask, “Will this create growth?” A mortgage for an investment property that appreciates, a student loan for a career-boosting degree, or a business loan for expansion? Those are smart bets. 

But swiping a card for a vacation you can’t afford? That’s a trap. Shop for low rates, plan your repayments, and keep your debt-to-income ratio under 25%. Debt can lift you up if you borrow with intention.

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