American Have a 53.8 Thousand Dollars Liability on Average for this Secret Reason

American Have a 53.8 Thousand Dollars Liability on Average for this Secret Reason

Consumer Credit Research Institute gave a report about the liability condition of American, which shows American have a 53.8 thousand dollars liability on average.

The reason is very simple. As long as the debt is maintained at a certain leverage, the more you borrow, the richer you are.

Statistics show that listed companies with high debt ratios in the A-share market are not uncommon, and 18 stocks even have a debt ratio of more than 100%. It is worth noticing that under the background of the continuous decline in investment growth, with the deepening of de-leveraging, the profitability of different industries has different degrees of differentiation, and the impact on the A-share market is also changing.

Although US stocks is not worrying about high leverage, the situation is still not ideal. In the case of aviation giant Boeing, Boeing Company issued $900 million in bonds last year. The result was that Boeing had its first net debt in six years at the end of last year.

There are many examples like this. The larger the company, the higher the cash flow that needs to be turned over. Making use of stock market and bond market financing to boost business development has become the choice of most companies. While it is more appropriate to wait for cash to be credited, the demands of developing companies and the desire to expand the scale of business have forced corporate decision makers to choose a route that continues to welcome high debt.

It is the same for individuals. Personal debt is almost a must for expanding resources and investing money. A well-regulated worker can only accept the fact that his money is borrowed by a bank to do business for others.

In the past few years of real estate speculation, a friend often said that the interest rate of buying a house is very low, and interest can be ignored in the future, because the RMB has to depreciate. Nowadays, there is something wrong with real estate speculation, but thinking about the relationship between interest and income is a correct concept of financial management.

The reason is very simple. From other places, as long as you have the means to borrow 1 million, if you use 100,000 a year, and you have a way to earn 200,000 through 1 million, then you can earn 100,000 by relying on a debt of 1 million a year. If the business can be copied, then the debt is 10 million, and you can become a millionaire by the end of the year.

It must be realized that the capable people have to think about how to borrow money and use other people's money to realize their dream of wealth.

For example, credit cards. In the long run, as long as we pay back in time, we can get a interest-free loan from the bank, if our ability is strong enough, the bank can even give us tens of thousands of quota. For example, with my card, the overdraft limit is 60,000, which means with no cost, I get 60,000 per month for turnover. If I live for a few more decades, that is equivalent to the bank confessing the 60,000 yuan to me for decades, and I don't have to pay any fees.

But the reality is, many people are afraid of having a liability.

When the potential benefits and stability days are put together, everyone will tend to emphasize the risk behind the big gains, but actually forget another key thing: the stability is the most risky.