Debt: Friend or Foe?

When it comes to the subject of debt, there seem to be two opposing thoughts in the world of financial gurus.

Either:

1. Debt is good and should be used in large quantities to leverage business and real estate investments.

Or:

2. The presence of any level of debt on the balance sheet, even for business and investment purposes, is the equivalent to standing next to the gates of hell.

So, which is correct? Is debt a good thing that can lead to riches or is it a fast track to eternal damnation? Let us turn to our coach, Warren Buffett, for the answer.

First, though, let us evaluate the two debt paradigms in the eyes of the paradigmers.

Wrapping Your Brain around Debt versus No Debt