When we talk about debt, we are generally expressing our concern that we may have taken on too much of it. Perhaps making the monthly payments is becoming onerous, and indeed we can get to the point where excessive debt can sink us into bankruptcy.
But the judicious use of debt can provide what we refer to as “leverage.” Investing $100 and getting a 10 percent return will yield just $10. But when investing our own $100 along with another $100 borrowed, we would enjoy a return of $20.
