Debt Restructuring

Distinguish Between Good Debt and Bad Debt

The term "debt" is not inherently bad or something to avoid. Sometimes, creating certain types of debt can help generate income and wealth...

Good debt refers to debt incurred to purchase assets that generate cash flow exceeding the repayment costs...

In contrast, bad debt often creates problems for the debtor as it leads to expenses...

Analyze Debt and Prioritize Repayment

Start by gathering all existing debts. You might compile them into an Excel table and save it on your computer...

Such data collection will enable better repayment planning, such as prioritizing debt repayment...

Change Behavior to Avoid Falling into Debt Again

Becoming a champion is hard, but maintaining that status is even harder...

Everyone can learn lessons from their success in managing debt repayment according to their plan...