Personal Leverage Ratio

Your Personal Leverage Ratio

Gen Y Finance Guy Financial Ratios 2 Comments

Based on the short amount of time I’ve been writing, you may have gotten the wrong message. Yes, I am working diligently to pay off the mortgage early on my primary residence. However, this does not mean I think all debt is bad or evil. Consumer debt is pure evil when you are the borrower! If you are the investor/credit extender it can be very profitable (check out Prosper if you would like to get a piece of this action). If you have consumer debt, pay it off as fast as humanly possible, and never look back. When it comes to non-consumer debt or what I like to call productive debt, I am totally for it. Before we talk about what your leverage ratio …