Not All Debt Is Bad But Can You Tell The Difference?


Debt is a lot like mushrooms. If you are going to go foraging to add a few tasty treats to your feast with friends – you had better know the different types, lest your feast turns into a murder mystery!

Some types of debt can seriously enhance your wealth feast and not only accelerate your time to freedom but also increase your safety!

Yep –

BUT like mushrooms…

…some types of debt can kill you and your dreams and other types of debt, while not killing you, will give you a nasty trip – to the loo!

So I’m sure you can see why understanding what types of debt there are and how to identify them and use them safely in your wealth cooking is a rather vital skill.

That is what this video is all about. In it I explain that there are actually three main types of debt:

  • Expansion debt
  • Neutral debt
  • Wealth contracting debt also known as consumer debt because it quite literally consumes your wealth – and even more scary than a flesh eating mushrooms – this is the type of debt most people have loads of!


Watch the video now.


How does it feel to be one of a tiny minority of people who finally get it?

A tiny group of people who understand why debt is so powerful and why companies, banks, countries want you to be in debt.


In the video you will have discovered a very useful way to get an indication of whether you are entering into expansion or contraction debt –

As you consider buying something using debt ask yourself these two questions:

Am I considering entering into this debt from “not enough-ness” or because I am excited about utilising whatever I am wanting to go into debt for to create more value in my life and for others and expand me?

Am I committed to make the expansion happen and do I understand fully the value of the money I am going to exchange for it?

The answers will give you a pretty good steer as to whether you should:

  • go for your life and enjoy the acceleration the debt gives you, or
  • run for your life with massive gratitude at the narrow escape and your wisdom to know the difference.

I’d also love to know:

If you have debt in your life – which category of debt does the majority of it fall into and if it’s contraction debt what commitment are you prepared to make to free yourself from it?

If you don’t have any debt in your life, does the understanding of expansion debt change the way you think about how you can accelerate your time to freedom?

Please let me know in the comments below.

Remember to share as much detail as possible as thousands of Wealth Chef’s in the making come here each week for juicy wealth snacks, insight and inspiration as they create their juicy, financially free lives too. Your ideas and shares may trigger someone to have a big breakthrough.

Thanks as always for reading, watching and sharing so generously and for choosing to master this key ingredient money and live your un-limited life.

Big love


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  • Rabelani Moleya says:

    Thanks Ann for such brilliant life time education,,,,I can’t wait to learn more via workshop,,,my first workshop,…I’ve never been so excited before to learn about money.

  • Malathie says:

    Thank you so much. This is great knowledge.

  • jeanne says:

    i was someone who didnt have big debt and after meeting you, listening to what you said about debt and doing your programmes i blitzed the tiny debt i had. sadly in the last year i seem to have fallen off the wagon and suddenly i am in a lot of consumer bad debt!!
    thankfully i have also bought a house which is more neutral debt and i do have equity investments through ETF’s (another one of your suggestions) but i need to get out of the bad debt asap – i feel like it could drown me!!

  • C REUM REUM says:

    3 months of freezing my credit cards aka Ann”s best tip ever and only using a debit card has made me SO aware of impulse spend.
    I have NO consumer debt and feel so delighted to be free of that.
    Also making home meals stretches the food basket much further and it is creative and fun.Started cooking for the first time this year.
    Even when going out choose healthy nutritional meals rather than treats.
    Dining out in itself is a gift to self.Mind set changes.


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