Elaine is an international author of two award-winning books. Check out this excerpt and click through to gain a better understanding of when and how to use debt.
Today, credit is everywhere, and unfortunately, it does not come with instructions. I was recently at a supermarket in Peru, and I remember seeing a boy there paying for cigarettes and beer with a credit card. The cashier asked him, “Would you like to pay this in one payment or 12 payments?”
In places like Peru and Colombia, credit card companies charge up to 50% and 100% for cash advances. 50% or 100%. Imagine paying that much extra for something small, like cigarettes or beer. That’s why it’s so important to understand the differences between taking on “good” debt and taking on “bad” debt.
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