Pay Off Debt Now - Top 5 Reasons To Eliminate Debt From Your Life

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Some people are just stuck in their ways and have been brainwashed into believing that credit cards and debt are an unavoidable part of life.
Dave Ramsey

The Weight Of Debt

Debt has become such a normal part of our society that it’s not really viewed as the big baddy that it is. But, make no mistake, debt is a criminal.

As a public school teacher, I get to see firsthand how quickly young people put themselves into debt, long before they have any real understanding of what it means.

The Path We Encourage

Somehow we’ve convinced ourselves that a 17 or 18-year-old is capable of understanding what it really means to take on thousands of dollars of debt for college. And this is debt that, in most cases, sticks with them right through any bankruptcy. Why do they do it? Because they’re told it’s just a normal part of the next phase of life.

And then, once they get to college, the credit card companies are waiting. So not only are these young people piling on the debt each semester by using student loans (at increasingly high amounts each semester, if they’d like), now they’re funding their new lifestyle of freedom and fun with debt too.

Of course college eventually ends, and then it’s time to buy a new car with debt. And they’ll need a garage to put it in of course, so without waiting to save up any real down payment, it’s off to the bank for a mortgage on a house that’ll make mom and dad jealous.

And just like that, our 18-year-old young people have become 22-year-olds trying to start their lives with an incredible financial weight pushing them down. Right out of the gate they’re slaves to debt, working only to make their payments, never realizing there’s a better way.

Gloomy picture, huh?

Maybe you’ve been there. Maybe you’re about to put your child there. Or maybe your heart is pounding a little because you’re there right now and, even though you don’t like the tone of my story, you don’t fully understand what’s so bad.

Regardless, keep reading as I outline five reasons why debt is NOT your friend…

Reason #1 To Pay Off Debt: It Makes You A Slave

It may sound dramatic, but it’s true. Debt makes you a slave. As long as you have debt looming over your head, you’ll be working to build someone else’s wealth as much as your own. Maybe even more so.

Think about it. If you owe on your car, credit cards, and student loans, then most of your money is going right back out as soon as it come in. You aren’t working for yourself. You aren’t even working for your boss. You’re working for the bank, credit card companies, and some lending company. This is no way to exist.

Don’t let someone else own you just so you can own more stuff!

Reason #2 To Pay Off Debt: It Steals From Your Present

Debt is also a thief. This directly follows up on my previous point. You see, as long as you are working so that your income is immediately converted to debt payments, you can’t use that money for anything else. It eats up your disposable income. It limits what you can do now.

If you haven’t already done it, build a budget. Look at how much of what you bring in is sent back out to cover debts. Imagine the things you might enjoy right now if you could keep that money!

Reason #3 To Pay Off Debt: It Steals From Your Future

Like I said, debt is a thief. In fact, debt is a very good thief. Why? Because debt steals not only from your present, but also from your future. How? Interest.

See, interest either works for you (via growing investments) or against (as it accumulates on debts). Even a low interest rate steals from you over time. Don’t believe me? Find a good mortgage amortization calculator and play with some numbers. You’ll be shocked at the difference in interest paid on a 15-year mortgage vs a 30.

And all the while, you CAN’T use the money you’re sending off as payments as investments where you can set compound interest to work for YOU!

Reason #4 To Pay Off Debt: It Creates Risk And Instability

It also bears mentioning that as long as debt is attached to something physical, that item can be taken from you if you fail to make your payments. In fact, some companies are probably hoping you won’t.

While a car payment may seem normal and harmless enough, there will always be risk attached to the vehicle. Imagine an emergency that lands you without a job for an extended period. What happens when you can’t make your car payment? It gets repossessed. How will you get to interviews now?

Debt creates instability in your life. Just because people have come to accept it doesn’t make it any less dangerous.

Reason #5 To Pay Off Debt: It’s A Cycle

And of course, as I mentioned before, the only way to maintain a lifestyle built on debt is to stay in debt. Here’s why:

If you find yourself in a situation where you look and feel wealthy, but send all your money out immediately each month to make debt related payments, then you have no more money left to maintain your comfortable lifestyle. So, what now? More debt of course. Then what? Make the payments. After that, more debt. And on and on.

This scenario doesn’t even factor in the significant danger of eventually finding yourself in a situation where you can only afford minimum payments or interest only payments.

Dig yourself out of the cycle of debt before it’s too late!

Did I Convince You?

Now I’m well aware that people have successfully manipulated debt to create wealth. Please don’t think I’m ignorant. But know this, they did it by assuming risk.

I’m not a fan of intentionally inviting significant risk into my finances. For most of us with families working the 9-5, it’s just not worth it. Especially when we have evidence that great wealth can be built safely and steadily in other ways. (Read these books for more on that – See Books)

So, that’s my case against keeping debt. I hope you’ll join me in debt-free living!

And as always, regardless of your money goals, you can “Bank on a Budget” to get you from where you are to where you want to be!

Debt doesn’t just steal from your budget, it steals from your future. Get debt-free!

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Alex

Hello, my name is Alex! I'm a public school teacher who has achieved some big financial goals just by getting control of my money using some simple strategies like using a monthly budget. Now I'd like to share what I've learned with you. Welcome to "Bank on a Budget!"