Welcome to Fintastic Females, where we embark on an adventure to discover the mythical island of freedom together. I’m Kalyani, and my partner is Rupali. We’re your friendly neighborhood finance experts, sharing our experiences in the world of money and energy. In today’s episode, we’re diving into a topic that often gets a bad reputation: debt. We’ll also touch on the increasingly popular Buy Now Pay Later scheme. Recently, we’ve noticed a wellness center and even the local supermarket chain offering this option. Personally, I’ve used Buy Now Pay Later a few times for cash flow reasons, making things more affordable. But before we delve deeper, let’s talk about debt itself. It’s a loaded word, often viewed negatively. Our upbringing and generational differences shape our perceptions of debt. Our parents, particularly as immigrants, emphasized living within our means and avoiding debt whenever possible. But times have changed, and interest rates have been low for quite some time, making debt more accessible. However, whether the debt is good or bad depends on how it’s used and our mindset towards it. We believe that mindset and financial savviness go hand in hand. Debt can be seen as good when it is used to invest in something that will grow in value over time. For example, student loans are often seen as good debt, as education is an investment in ourselves and our future earning potential. Buying a house through a mortgage is also considered good debt, as it’s an investment in an asset that is expected to appreciate in value. Of course, each individual’s comfort level and financial situation play a role in determining what constitutes good debt. On the other hand, bad debt refers to borrowing for expenses that don’t hold or increase in value. For instance, taking out a car loan for a vehicle that depreciates rapidly can be considered bad debt. It’s important to strike a balance between using debt for beneficial purposes while keeping enough liquid cash for daily expenses and other investments. Ultimately, debt’s perception depends on our mindset, financial stability, and the purpose for which we borrow. Similarly, the concept of Buy Now Pay Later, including credit cards, falls into the realm of debt. Credit cards, often viewed negatively, can be advantageous if used responsibly and for managing cash flows. In Dubai, credit cards come with various benefits such as discounts, reward points, cashback, and airport lounge access. By leveraging these perks, we can maximize the value of our purchases. Responsible use of credit cards allows us to enjoy the benefits while avoiding interest and fees. It’s all about managing our financial situation and being mindful of our expenses. Ultimately, debt and Buy Now Pay Later options can be seen as tools that, when used wisely and with a positive mindset, can enhance our financial well-being and provide opportunities for growth.