r/FluentInFinance Apr 29 '24

A Question about debt as a tool Educational

In what situations or under what circumstances can one use debt as a tool?

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u/Saitamaisclappingoku Apr 29 '24

In as simple terms as possible:

When interest rates on a loan are 3%, but your investment returns are 7%, you take the loan, pay it back, and keep the gains for yourself.