In this episode, we discussed the effective use of leverage AKA debt.  We started the conversation with the recent "hot" topic: home refinancing and interest rates.  We also discussed whether potential inflation is on the horizon due to the stimulus package.  Nathaniel explained how he played the credit card game.  Dan asked: is there such thing as good debt?  Tim said debt is neither good nor bad, it's about your utilization of it.  Before you use any leverage and take advantage of debt, you have to make sure that you have steady, consistent income streams, and have savings in the bank first.  A complete financial plan and understanding of your cash flow is the foundation of using debt properly.  Nathaniel talked about how to utilize leverage in the investing world.  He mentioned that the key to analyzing a company's debt on its balance sheet is to understand how the debt’s due dates are staggered and whether the company’s FCF can support the future debt payments or not, and how the company plans to use that debt.  Dan summarized it very well: use leverage in a moderate amount, understand it, and remain disciplined.