Why No Debt is Good Debt

Many Americans have been duped. We have been taught and encouraged to spend money that we don't have. These messages come from everywhere, from radio, television and newspaper advertisements touting that we can get everything that we want today, and don’t have to pay until later. These companies paying for these advertisements aren’t doing so to be nice, but to make money. They understand that while how we may benefit from our purchase today, we will end up paying for it long after we've used and discarded it. Their goal is to get us to spend money and then profit from those expenditures for years to come.

Now there are good reasons to use debt to make purchases. They include buying a home or a car, because most individuals don't have enough money saved up to make those purchases with cash. However, debt is debt and having it means that you owe someone else and you will eventually have to pay up with interest. Therefore, when and where you can, it's best to get rid of debt, including your home and your cars. Most car loans are set up to be paid off within five years, which is a reasonable amount of time.

Many home loans are set up to be paid off in either 15 or 30 years. When one can afford it, a 15 year mortgage is much better than the 30 year one because one will pay a lot less interest and one owns the home out right much faster. This gives individuals a lot more options. An individual can rent out the home and not worry about making any mortgage payments.

It may be a bit outrageous to expect individuals to live with no debt. However, there should be every effort made to live off as little debt as possible and to pay it off as soon as you one can. the biblical adage is true, “the borrower is slave to the lender.” The people that one owes money to, have power over their life. Therefore, when one can, they should do their best to pay off their debt. To accomplish this, individuals should make more than the minimum payments on credit cards and cut expenses as much as possible.

Extra money should go towards eliminating debt in other areas. A non profit company and program can help! The absolute best way to deal with debt is to avoid it. This means saving up for large purchases instead of using a credit card. It also means creating an emergency fund so that you don't have to rely on credit cards to cover these types of expenses. Even though society and marketing firms encourage us to spend now and think about it later, avoid this mentality. Instead adopt one that is much more practical and patient. Only purchase what you can afford and when you do have to borrow money, make sure that you pay it off as fast as possible.