Borrowing to Invest: Helpful or Hurtful?  by Nora Dunn on 17
October 2007 20 comments Photo: Flattop341  Philip's recent
article entitled Good Debt Bad Debt sparked quite a debate as to
whether any debt can be considered good debt.  And as far as
being in debt for luxury items or non-essentials goes, I agree
that carrying debt is a bad habit to get into. Interest dollars
paid each month are going down the drain to help you pay for
items that in many cases have already been consumed.  But to
carry debt that enables you to earn money is a concept called
Leveraging, and can be very effective in building wealth,
businesses, and incomes.  Mechanically speaking, leveraging is
the act of using a lever to gain a mechanical advantage or
additional power.  Financially speaking, leveraging is similar.
defines it as:  The use of a small initial investment, credit,
or borrowed funds to gain a very high return in relation to
one's investment, to control a much larger investment, or to
reduce one's own liability for any los