Ask Leo: Can we land into passive debt through much of debt.
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It's easy to get into debt but let come to think how to come out of it, because to come out of debt it's not easy and it has ruin so many people's wealth, although there some favourable debt and when it comes to passive debt, it's so critical and not advisable to fall a passive debt. It's rates are too high and almost a long period to pay off when someone fall a passive debt.
Most time being in a huge burden and also in a position higher than your budget can lead to passive debt because when you started doing and investing on what is too much higher than your budget and your capital, you find yourself in a passive debt and it might not be easy to pay off.
In some cases when you find yourself in a passive debt to establish or invest, the pay off of a passive debt can also ruin what you invest the loan that turns you into a passive debt. Debt are so scary, to build up debt is so easy but to pull out of it might be difficult sometimes.
Debt is more unless spending what you don't have at the moment like what exceed your savings, sometimes you sees it as a progress but mind you, you're not giving a solid background for your wealth if you base on debts. It happens that you may acquire something's for a short time but when the debt comes for it you can loose it forever.
Lastly, passive debt are types of debts that we owe on credit score basis, car loans, house loan, loans that you need to pay off regularly, and if you have pass your boundaries finding yourself in this type of loans, to pay off might be so difficult but I will advise that some ways to override this debt is by building a strong and very solid financial future.
Thanks for reading !