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How debt can help you build long term wealth

Contrary to what some people may think, debt can help you build your wealth – especially if the debt is used responsibly with a clear plan and objective.


In this article, we look at three ways that may help you to better utilise debt to increase your wealth over the long-term.


‘Efficient’ debt verses ‘inefficient’ debt

It’s important to outline the difference between efficient and inefficient debt.

Inefficient debt is generally associated with assets that depreciate in value and have no potential of producing income or offering tax benefits. This could include debt such as a car loan or using a credit card to pay for a holiday.



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