Being In Debt is NOT a Necessary Part of Life

debt part of lifeMost Americans have a pile of debt.  Are you one of them?

Debt has gotten to be such a normal part of life in this country that most people don’t even question it anymore.

In fact, some people think having debt can even be a good thing.

But really, do you need a pile of debt to get all the things you want and need out of life?

Let me answer that one for you…

No, you don’t.

In fact, I think it’s just plain silly to think that debt is a necessary part of living a normal life.


A False Sense of Prosperity

Think about it for a minute.  When you’re in debt, what does that debt actually do to you financially?  It siphons away your hard earned money by forcing you to pay extra for whatever you buy with it.

Debt causes you to pay interest and fees that could be better used to live your life instead of sending it to a finance company.  It causes you to pay a premium price on the things you want and need.

In the long run, debt serves to suck you dry financially while giving you a false sense of prosperity.


So Why Do You Stay In Debt?

Most of us, if asked if being free from debt would be a good or a bad thing for our own life, would choose debt freedom.

So why is it that the vast majority of us are in debt up to our eyeballs?

Why do most of us continue in debt even though we know what’s best for us in the long run financially?

There are several reasons I can think of.  Let’s take a look:

  • Everybody Wants to Fit In-  You want the cool things everybody else has so you can be like them or because you want to fit in with a certain group.  So you end up spending money you don’t have to keep up with the Joneses.
  • Not Educated About Money- Too many people just don’t realize how interest and fees add up over time to keep them in the poor house.  When you are educated about money and debt, you have the tools that will cause you to start winning with money.
  • Lack of Self Control With Money-  Some people just aren’t good with self control.  They don’t seem to be able to make themselves stop spending once they start.  So they continue to spend without thinking, eventually digging a financial hole that ends up being very difficult to get out of.

Here’s the plain truth about debt:  when you have it, you’re wasting hundreds, even thousands of dollars every single year in interest and fees.

Because of that, debt makes you poorer than you otherwise would be.  But if you use proper planning, you could use those wasted dollars for things that create much more value in your life than keeping credit card and finance companies in business.


Debt = Stress

When you have debt, you also have more stress and worry in your life.

You worry about needing to make more money.

You worry about being able to make the payments.

You worry about your future and the fact that your present debt is eating you alive.

Everyday life is stressful enough without having to worry about debt and the additional problems it brings to your life.

If you have trouble sleeping at night and have that continual knot in the pit of your stomach due to stress, it’s very likely you’ll discover that at least some of that stress is being caused by debt if you take an honest look at your situation.

Don’t let debt rob you of your future, your present, or your peace.

It’s SO not worth it!


Debt Freedom Is Achievable

I’ve been out of debt (except for my house) for 7 years now, and I can tell you without a doubt that debt freedom is achievable.  I have first hand experience that says life is tremendously better without the bondage of debt in my life.

Debt is called “bondage” for a reason.

It keeps you tied down.

It keeps you from having your freedom.

Getting out of debt really isn’t an extremely complicated process, but it does take time and dedication.

So get educated, ignore the marketing, change your habits and your mindset.  Then you can get out of debt and start succeeding with money… guaranteed!

Has debt a bad effect on your life?

Do you recognize yourself in the bullet points above?

Tell me about it by leaving a comment.



Is There Such a Thing as Good Debt?

Are Minimum Credit Card Payments Really Affordable?

Changing Your Behavior Requires a Paradigm Shift

How Not to Finance a Car

Why Are the Rich Getting Richer?

You Know What You Should be Doing, What’s Holding You Back?

Are You Leaking Money?

You Do Not Need a Credit Score

About Dr. Jason Cabler

17 Responses to “Being In Debt is NOT a Necessary Part of Life”

Read below or add a comment...

  1. I tend to think people are in debt because they’ve been trained by our culture to equate owning ‘stuff’ with happiness and social status. Stuff doesn’t make them happy, of course, but they keep buying more because they think just one more gadget or toy or larger home or fancier car will do the trick. And they gotta ‘keep up with the Joneses.’ Curtailing debt begins with understanding that no one wishes on their death bed that they’d been able to accumulate more stuff during their life.

  2. I was scared of debt right from the beginning and got out as quickly as I got in. You are right, debt in this country, and in the world for that matter, is way out of control. Unfortunately for savers, they are the ones who take a lot of the hit as countries deflate the currency to get everyone back to the point where there head is just above the debt waters so it can all continue for a few more years. Rinse and repeat.

  3. Growing up, I believed that debt was just normal – a mortgage, car loan, and student loans are just part of life. I remember trying to tell my family that I wanted to buy a used car with cash and they looked at me like I was crazy!

    • It’s great that you’re willing to go against the grain. Your family may not think you’re so crazy when they complain about having to make car payments every month while you drive a paid for ride. Keep up the weirdness Lisa!

  4. Scott W says:

    At the risk of getting killed on an enemy of debt blog I don’t think a taking out a modest mortgage that is well within your budget with at least 20% down is a horrible thing. I think the small tax benefits and ultimate home ownership in most cases make buying a house with a mortgage better than throwing money away on rent.

    I have 7 years left on a 10 year mortgage on a $190,000 house with about 90k still owed. I have $380,000 in investments so could pay off if I had to but $280,000 of investments are in IRAs and 401ks so don’t want to use all of my liquid reserves.

    By the way I do get a kick out of people who say I own a house/car when they owe money on that item. I consider myself to own about 1/2 a house. I will not say I own a house until I don’t have a mortgage anymore.

    • I don’t really hassle people about a reasonable mortgage, which you seem to have. Definitely better than renting. I even wrote a post about that on my blog a while back that runs the numbers.

      “Should You Buy or Rent- Which is Better?”-

      Obviously the 100% down plan is best. But a 15 year (or less) fixed mortgage with at least 20% down and a payment of 25% of take home income or less is a solid plan for a sensible mortgage.

      • JMK says:

        I have mixed feelings on the rent vs own discussion. We currently own and have built up massive equity and the mortgage will be paid off in less than 3yrs. That’s all good. On the other hand even when it’s paid off I’ll still have the ~$5k property taxes, the massive utility bills, the maintenance and insurance. Living in a “paid for” home only means the mortgage payment goes away – everything else remains the same. Try not paying your property taxes, and you’ll be out of your home same as not paying the rent. You could say paying all that property tax or replacing windows and roofs is throwing money away. You don’t really have anything to show for it. It just keeps the city from taking legal action against you and keeps the rain and drafts out. Once our mortgage is done our ongoing monthly expenses and allocations to the maintenance fund will still run way over $1k/month. Yes it’s a good deal for almost 3000sqft. On the other hand when our youngest is gone in another 6-8yrs do two people really need that much space or would we be far better off renting a 2brm apartment and retiring 10-12 years earlier by getting our hands on the equity? Building up equity in a home is great, but it’s just an interesting number on your spreadsheet until you actually get your hands on it.

        • Once you have the mortgage paid off, renting could work depending on your age. Using the money you get from the sale of your house to pay the rent for the rest of your life could be a good strategy because there are no taxes, repairs, etc.

          However, owning your house into old age is not necessarily a bad strategy either, as the house will most likely continue to appreciate.

          It sounds like you live in a pretty expensive area, though, so you have to weigh the options. Either one can work depending on your perspective.

  5. Great post, Jason. Like Lisa, I grew up believing that debt was a “regular” part of life and that it was acceptable. My husband and I spent the first 16 years of our marriage spending more than we made, for a wide variety of reasons we deemed acceptable. In January we decided to start digging our way out, and it’s been a long and difficult road, but one that I know will be worth it so we don’t have to dig out ever again.

  6. All you have to do is dig out once and never go back. It absolutely WILL be worth it. Just don’t get lazy and go back to old habits after you get there!

  7. dojo says:

    We’re both debt free (I had car payments from 2008 to 2012 and learned my lesson) and many are looking at us as if we were martians 😀

    We’d rather have the security of being debt free than go and buy things we cannot afford. We are working hard in our business to earn our living, we’re not earning too much, we’re not earning too little. But we do try to live as if we did earn less and save the difference. My husband was always ‘anti-debt’ and, after getting debt free myself last year I understood what difference it all makes

  8. Debt girl says:

    I am one year into my debt repayment plan and I hope the next 4 years go by fast! I will be so much better off. There is no way I could cling out myself. Bt his was my only chance. Stay out of debt is easier than getting out of it!

  9. many years ago, our parents and grandparents had a horror of being in debt.
    nowadays it seems so normal for many people
    PR, marketing companies and the media are playing us all for suckers.
    I think our parents and grandparents were right

  10. Yes, we have to be aware of the ways we can be manipulated and make an effort to keep that from happening. It’s not that hard if you just make yourself aware of what’s going on. Grammy and Poppie definitely had it right- stay out of debt!

    Thanks for the comment!

Leave a Comment...


This site uses Akismet to reduce spam. Learn how your comment data is processed.