People have a love-hate relationship with debt. On the one hand, debt can provide the ability to purchase goods and services that might otherwise be too expensive, provides a sense of security, and a means of payment when money is tight.
On the other hand, debt can also cause stress and anxiety when not managed responsibly. People may find themselves in a cycle of debt, unable to pay off their balances due to high-interest rates and late payment fees.
According to recent research, an average American held a debt balance of $96,37 in 2021, a 3.9% increase from its value in 2020. The rising debt balance constitutes auto loans, mortgages, personal loans, and student loans that expanded within a year.
Noelle Randall, a millionaire real estate expert, and business coach, asserts that people can utilize debt to their advantage. “People must see debt as an opportunity to make more money, especially when used correctly,” Noelle shares.
Three Important Truths About Debt
Most people are only familiar with credit card debt, student loans, and other forms of consumer debt. However, corporate debt is an entirely separate matter. Like large corporations, businesses can incur debt in their names and profit from it to finance operations.
Here are some underrated truths about debt:
- Debt is good
Debt is good when used as leverage, just like business debt. “When people open a business, they need to add their name and EIN to their business credit report. This is how people can simultaneously protect themselves and grow their business,” Noelle explains.
- Business debt is better than personal debt
“Debt is good, and debt in your business’ name is even better,” says Noelle. Business debt enables individuals to take care of their credit, so they no longer have to worry about it. When a person establishes a business and obtains business credit, they no longer need personal credit. They can, instead, acquire everything under their business name.
- Debt will free up capital in a business
Every business needs capital to operate. In some instances, businesses fail due to insufficient capital or because they only consider borrowing money at the last minute.
Noelle adds that most businesses, especially large corporations, use debt to free up their capital to make investments for their business. “Businesses borrow money to purchase more inventory, hire more employees, or finance marketing activities. They do this to open up more opportunities and earn higher sales,” she explains.
Learning Business Credit and More with Noelle Randall
Noelle Randall is a successful business coach and real estate entrepreneur. She offers free and comprehensive courses at NoelleFreeTraining, where she teaches students her formula for investing in real estate, building strong business credit, and maximizing business growth.
In addition to this free training, Noelle encourages aspiring entrepreneurs to attend her two-day Grow Your Wealth Challenge on February 11-12, 2023. Her talk will cover various topics relevant to aspiring real estate entrepreneurs, including the importance of learning about and mastering real estate law and business credit.
Noelle’s goal for these workshops is to arm participants with the information, skills, and connections they need to become leaders in their field.
