We are conditioned to think that all debt is bad, made to feel bad about borrowing and taught that achieving freedom can be done only through eliminating all liabilities using the most aggressive means possible. According to a recent LendingTree survey, 34% of Americans believe that you can’t be considered wealthy while you have debt. Of the 66% who believe it’s possible to be rich while you owe money, 31% feel that the debt has to be tied to a mortgage. Read More: 5 Key Mindset Shifts To Financially Beco ...

Core Insights - The article discusses the distinction between good debt and bad debt, emphasizing that good debt is associated with appreciating assets while bad debt is linked to depreciating items or fleeting experiences [1][2]. Group 1: Bad Debt Examples - Financing furniture is highlighted as a poor financial decision since it depreciates immediately, leaving consumers with debt for an item that loses value quickly [3]. - Vacations are also categorized as bad debt, particularly when individuals spend large sums, such as $10,000 on a trip, which results in debt without tangible long-term benefits [5]. - Clothing and accessories, especially from fast fashion, are noted as another area where financing can lead to financial difficulties, as these items often do not retain value [7]. Group 2: Alternatives to Financing - Instead of financing furniture, consumers are advised to purchase used items from platforms like Facebook Marketplace or consignment stores, which can provide significant savings [4]. - For vacations, the article suggests opting for staycations or local adventures to avoid incurring debt while still enjoying leisure time [6].

Group 1 - Crowdfunding platforms like First National Realty Partners (FNRP) allow investors to pool money for real estate investments without taking on debt [1][6] - FNRP focuses on necessity-based real estate, such as grocery stores and healthcare facilities, which are essential to local communities and often leased by national brands [6] - The commercial property market has different lending arrangements compared to residential mortgages, often with less favorable terms and potential call options for lenders [7][9] Group 2 - Graham Stephan and Dave Ramsey have differing views on debt, with Stephan justifying borrowing for appreciating assets while Ramsey advocates for avoiding debt altogether [2][5] - Ramsey emphasizes the importance of understanding the risks associated with debt, stating that more debt increases risk exponentially [1][10] - The article discusses the potential for investors to use good debt strategically, while also highlighting the importance of avoiding bad debt that does not contribute to financial health [12][13]