My philosophy on debt; Hint: it's not positive

3:38 PM, Feb 18, 2011   |    comments
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"You'll always have debt.  You'll always have a car payment.  You'll always have a mortgage.  Credit cards are just a way of life now-a-days."  Have you heard statements like these?  Most people have, and sadly most people believe them.  They are NOT TRUE!

"Big deal, everyone has debt."  Well, that IS TRUE but most people are DEAD BROKE!

Debt IS a big deal! 

I believe debt is the number reason why people don't succeed financially.  When you have debt, your hard-earned paycheck is being spent (with interest!) before you even get it.  That doesn't make sense.  Your income, which has the power to build wealth for emergencies, life, kids' college, and retirement is powerless when ridden with debt.

It's more than just about money!

I'm a firm believer that debt infiltrates its ugly head into other areas of your life; marriage, health, relationships, quality of life just to name a few.  Debt essentially equals risk, risk leads to stress.  And who wants any more stress?

Be honest, how would your marriage improve if you were debt-free and on the same-page financially with your spouse?  Would it alleviate some tension?  Would you sleep better at night?  Would it give you a higher quality of time spent with your children?  Would you be a better employee?  Heck, would it give you the opportunity to quit your job and actually peruse a job/career you want?  Were there decisions you've made, even recently, that you wouldn't have made if you didn't have debt?

Take this one step further.  Would your health improve?  In my case, it did.  When my wife and I took control of our finances by joining together, getting on a budget, opening up completely with our spending, and paying off our debt I felt so empowered and in-control I began eating healthier and had more enthusiasm to get into shape.  We had quit being lazy financially, which lead me to not being lazy with my body.

Don't be so comfortable with debt

I'll be honest, when my wife and I had debt, it wasn't "killing us."  The payments were very manageable and only a small percentage of our income.  However, something very powerful happened literally the second we paid off the last penny (of my student loans).  I didn't realize just how much of a burden it put on us until it was gone.  Debt is like that nagging back ache that's been around for years.  You've been dealing with it for so long, you almost become numb to it...until it's GONE. 

Don't let debt and the "normalcy" of having it in today's society keep you from getting rid of it!

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