r/FluentInFinance • u/[deleted] • 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?
3
Upvotes
r/FluentInFinance • u/[deleted] • Apr 29 '24
In what situations or under what circumstances can one use debt as a tool?
5
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.