Hiya,

I use a margin loan to buy shares. That is, the bank pays for the stocks (shares) I aquire as long as I buy the same value of stock using my OWN cash. Thus, I can own twice the value of shares I would ordinarily be able to own. When the company I own stocks in pays dividends, I get to keep them all (and reinvesdt in more shares). When the stock value goes up, I get to keep the difference if I sell them. In the meantime, the interest I pay on the margin loan is deducted from the tax I pay out of my income tax so it essentially costs me nothing (or very little). I don't use the margin loan to acquire more shares than I can actully buy using my own cash reserves, I just choose to use the banks money instead as it yields legitimate tax deductions.

This kind of debt is not for everyone, but I dont feel any discomfort in using it myself.

Matt

__________________
Matthew Glover
Reformed Presbyterian Church of Australia