- Original Poster
- #1
When studying for my MBA a few years ago, I learned that debt is a good thing. To maximise profit, a company should strike the optimal balance between debt (which, in the US at least, is tax-deductible) and equity.
On the other hand, when looking for companies in which to invest, I found that several of the best-performing small public companies had no debt.
We have financed our current venture by using personal money and by obtaining unsecured debt; since the debt is unsecured, we won't lose our homes if things go wrong. We accept zero percent credit card offers, and we transfer balances from old cards to new cards once the initial introductory period (usually 12 months) is over.
What do others think about debt? Is it a good or a bad thing?
On the other hand, when looking for companies in which to invest, I found that several of the best-performing small public companies had no debt.
We have financed our current venture by using personal money and by obtaining unsecured debt; since the debt is unsecured, we won't lose our homes if things go wrong. We accept zero percent credit card offers, and we transfer balances from old cards to new cards once the initial introductory period (usually 12 months) is over.
What do others think about debt? Is it a good or a bad thing?
