I did a presentation during a public forum on "Good Debt Vs Bad Debt" two weeks ago. The objective of the forum is to help the public understand the debts better.
Millions of people struggle financially because the the power of debt leverage is used against them. Because of the consequences of abuse, many people fear this form of leverage.
There are three groups people in this world: The Poor, The Middle Class and The Wealthy.
Poor people would be those who are loaded down with bad debts, with no means to ever get out of their indebted situation.
Middle Class folks are those who denys any goodness in getting into debt, pays everything with cash and leading a life just over broke.
The Wealthy make use of debt as an instrument to create more wealth for themselves. So long they can afford to spend, the will pay on credit. Earn points to exchange for gifts, keeping the cash for emergency.
So if i were you, i would take up the renovation loan and keep my cash in some liquid investment (e.g. short-term fixed deposit) to earn interest and for emergencies.
Good luck!
Gorix, Self-taught Financial Guru
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