Getting into debt the right way
IN all economic stages, debt or credit has been part of the movement toward the economic growth of the nation. We cannot deny that the majority of us Filipinos use debt as a tool to attain something important. In major cities and urban areas, debt is used as a vital tool for business expansion and growth. If you notice, Asset = Equities + Liabilities. Therefore, since debt is part of liabilities, debt is essential to hasten the growth of the company or the nation. Debt is a means to generate money and a sensible means of funding a business. It is also one of the top reasons a company or a nation may default, which means their cash flow is inadequate. Personal finance has taught us the principle that in order to have a good and healthy cash flow, one should live within one’s means and spend no more than one’s income.