Using Debt to Open a new Income Stream
What if I gave you $10,000 and told you had to pay it back in 60 months? This debt has a 37.7% interest rate, so you're paying $372 per month for 60 months. After you have made your last payment, you would pay over $22,000 in total. Would you borrow this $10,000? What if I told you that you could pay that debt off in 24 months instead of 60? What if I told you that if you paid it off in 60 months, you would make an additional $1,500 per month? People fear debt because they use it for frivolous bullshit—the cars, the houses, the watch, the electronics, etc. The people who welcome debt are people who can make money when they get into debt. Let's say you're a savvy businessperson and want to make some extra cash flow. You decide to go into the vending machine business. You go to a loan officer and borrow $10,000. It has a 37.7% interest rate, so you're paying $372 per month. You scout for 2 locations. Each location wants a beverag...