Why Do Rich People Also Have Debt?

[Suba]

The word debt is often synonymous with or indicates financial limitations or inability. Many people are even embarrassed so they hide their debts so that others do not know. From several sources that I have read, it turns out that rich people also have debts, even with a larger nominal amount than poor people. There is no guarantee that people like Elon Musk are also free from debt. What do you think?

 

[riberet19]

This is called positive debt, and it is when you use the debt to your advantage, acquiring assets that you know will give you a very good return and having enough money to repay that debt in case your investment fails, the problem of low-income people is that they go into debt without having the necessary capital to repay the debt in case the investment fails.

 

[Augusta]

Being rich doesn't stop one from being a debtor. Rich people debt is always on the high side. Because they bortow these momies for bigger projects than sometimes the money they have

 

[Springtime]

Rich people or big businesses borrow money to finance projects which can give them good return.

 

[King Belieal]

Some rich people use debts to invest in projects that have faster and higher returns than the debts and they make money without touching their personal funds.

 

[eLdavis]

Most rich people usually take loans just to sort out their business or for various investments, this is the dept they are into.