Borrowing Money In Plain English

Updated: September 21, 2011

All rich people borrow money – they all have credit and loans.

Do you believe that statement?

I do because I’ve experienced how powerful it is to leverage on credit.

More than 70% of the start-up capital of the internet cafe I own was borrowed from an investor. Furthermore, a lot of the equipment I purchased was bought on credit.

Indeed, borrowing money is part of our financial life and whether we are buying a pair of jeans with our credit card, or purchasing our dream home through a housing loan, we all need to know how the system works.

And that is why I’m sharing with you today another video from Common Craft called Borrowing Money In Plain English.

This is a very short video that will give you some interesting insights about borrowing money. It also gives a couple of very useful tips on what to do when you’re planning to acquire a loan.

Let’s watch:

Perhaps the most important advise that was given in the video above is that one should get a loan that fits your needs. Always remember that whenever you’re planning to borrow money.

Furthermore, you should also be realistic with your finances and committed to your loan agreement so that you can avoid unnecessary fees and be delayed with your payments.

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  1. The secret of the rich is to leverage debt. By leveraging, it means using debt to your advantage – turning bad debt into a good debt. How? Basically, use credit cards to your advantage. Pay it on time, accumulate points and get the reward. Then sell that item.

    In its very essence, debt leveraging is “investing” the money you borrowed into a business or type of investment having a greater yield or interest income than the interest expense of the debt.

  2. borrowing is a good way to become rich. as long as you buy assets. by that, i mean things that would put money into your pocket. if you buy consumer goods with debt that is financial suicide!

  3. […] Borrowing Money In Plain English […]

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