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Many of us run away from debt because we all believe that debt make us lack from financial growth and yes it's true but when debt is been managed wisely it can play a significant roles in the financial landscape for both individuals and nations and help in economic growth which can also provide opportunities for investment. But excessive debt burden can result to unbearable effect on financial growth and hold up on financial stability.

Debt can be a catalyst for financial growth, when you make an effective management of debt it can be an opportunity for new investment and way to start new business and also uses to expand investment and businesses and also uses to acquire new assets. Not only for individuals but when government makes use of debts so we'll it can help in lot of new projects, it can be use to finance infrastructure projects, and also helps in educational sectors, health care services and other essential services which can contribute to economic development. As we have the positive effect of debt agains our financial at the same time we have a negative effect of debt in our financial as well so I will try and discuss and differentiate it in my writing.

THE POSITIVE EFFECT OF DEBT

Debt can provide capital to individual to startup a business and when you make use of it well with your business or investment it can yield out to be more profitable to you and which will serve as a positive impact to our financial growth and it also enable us to make a significant purchases which may help to help to sustain in life and this can make a positive effect to our financial life, such as buying new house, vehicles or pay bills that can help to increase our financial growth.

Having an education debt or student loan can also help as empower individuals to pursue higher education and also help to pursue a career for ourselves and let us improve in our skills and build ourself for brighter future because when you're not financially stable and you want a good career for yourself and the next option is loan or been into debt and you acquire it to achieve your goals which will later turn out to long-term economic growth.

NEGATIVE EFFECT OF DEBT

When you acquire too much of debt it can result to embarrassment and high level of interest which may turn out to be unable to pay up on time and the interest keep increasing and it may delay the financial growth in the sense that all you have will always be use to pay up the debt you've acquire and what you acquire the debt for will vanish in the cause of paying up the debt, you keep diverting all you have to fill up the debt, excessive debt burdens can ruin a business and investment and make it difficult to meet financial services and also block or hinder the economic growth as well.

To ensure debt positively contribute to financial growth, it is very essential to strike the right balance. When borrowing a debt or been in a debt you should know why you are into the debt and a mission and plans for it and you should know the reason for the debt so as to know how to make use of it and know how to manage it well and knowing how to return the debt should be your priority before going for a debt and never let the debt overthrown your financial growth so it can be more useful for the purpose you want to use it for. But going for a debt without a plan will surely ruin your financial growth.

In conclusion, debt can be in two form which have been discussed and explained, it can yield to positive financial growth and also negative financial growth, so is better to know what you want it for before going into it so as to avoid the negative part of the debt.

Thanks for stopping by my post and I will be open for corrections and additions.