How to Make Debt Work For YouTaking on debt comes down to its cost of capital and how you plan to use your borrowed funds.
By斯蒂芬·瓦格纳•
This story appears in theSeptember 2015issue of狗万官方.Subscribe »
Many personal-finance experts consider debt to be evil, whether they're talking about a credit card charging 15.8 percent, an auto loan at 1.9 percent or a mortgage creating a much needed tax deduction. Their advice is always the same: Pay cash.
But that's an oversimplification. Not all debt is the same; taking it on comes down to its cost of capital and how you plan to use your borrowed funds. If the conditions are right, this leverage can help you preserve cash and put an otherwise illiquid asset to work to build your net worth.
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