Not All Debt Is Bad… But Can You Tell The Difference?

Debt is a lot like mushrooms.

If you are going to go foraging to add a few tasty treats to your feast with friends – you’d better know the different types lest your feast turns into a murder mystery!

Some types of debt can seriously enhance your wealth feast – not only accelerating your time to freedom but also increasing your safety.

Yep – 

Having some types of debt can make your;

journey to freedom faster and safer.

BUT like mushrooms…

…some types of debt can kill you and your dreams, and other types of debt, while not killing you, will give you a nasty trip – to the loo!

So I’m sure you can see why understanding what types of debt there are and how to identify them and use them safely in your wealth cooking is a rather vital skill.

That is what this video is all about. In it I explain that there are actually three main types of debt:

• Expansion debt
• Neutral debt
• Contraction debt 

Contraction debt – also known as consumer debt, because it quite literally consumes your life and any chance you have of being wealthy – is even more scary than a flesh eating mushroom. This is the type of debt most people have in shovel-loads! 

Watch the video now.

How does it feel to be one of a tiny minority of people who finally get it? 

A tiny group of people who understand why debt is so powerful and why companies, banks, countries want you to be in debt.  

In the video you discovered a very useful way to get an indication of whether you are entering into expansion or contraction debt – 

As you consider buying something using debt ask yourself these two questions:

1. Am I considering entering into this debt from “not enoughness” or because I am excited about utilising debt to create more value in my life and expand my life? 
2. Am I committed to making the expansion happen and do I understand fully the value of the money I am going to exchange for it?

The answers will give you a pretty good indication whether you should:

• Go for your life and enjoy the acceleration the debt gives you, or 
• Run for your life with massive gratitude at the narrow escape and your wisdom to know the difference.

I’d also love to know:

• If you have debt in your life – which category of debt does the majority of it fall into? And if it’s contraction debt, what commitment are you prepared to make to free yourself from it?
• If you don’t have any debt in your life, does the understanding of expansion debt change the way you think about how you can accelerate your time to freedom? 

Share your journey on the Facebook Community Page (it’s free to join) and see what others are saying. 

Share as much detail as possible – thousands of Wealth Chefs in the making visit the group each week for juicy wealth snacks, insights and inspiration as they create their juicy financially free lives. Your ideas and shares may trigger someone to have a big breakthrough.

Thanks as always for reading, watching and sharing so generously and for choosing to master this key money ingredient and live your unlimited life.