“I put it to you that even the Central Bank owes a debt. The country owes debt. So, why won’t I as an individual in the private sector not owe debt, ” he asked with irritable confidence. This was the response of a well-known business to his lender at a local police station where they had been settling an issue of bad debt.
My attention was drawn to this man who talked fearlessly to his lender. I began to see debt as ‘not-such-a -huge’ crime but for the words of the holy book that hit me a reminder, “He who goes a-borrowing goes a-sorrowing.” Being a successful businessman requires you being financially responsible.
There’s no such thing as free debt. It always has a catch. Its possible that you may think that you have everything under control then suddenly you find yourself staring down the barrel of a debt repayment deadline over and over again. To avoid these scenarios that make your heart fail, you need to:
- Don’t take more than 50% debt. You never know what will happen. If the tenant misses her rent for a few months you want to have a safety cushion so you don’t get caught short of cash when your monthly mortgage repayments are due.
- Location, location, location. Pick an area with low risk of property prices falling. It might be more expensive but your first priority is always “Don’t lose money.”
- Pay Your Bills Willingly. The next time you get a bill, fine, or fee, pay it willingly. If you pay it painfully, you’re admitting that money is hard to come by, this might be a silent ringer for you to look for alternative means to get funded and you might see yourself on the repayment sheet again.