As much as the word “debt” carries with it a negative connotative meeting, the majority of the world, to the tune of 50 percent or greater, has at least $20,000 in unsecured debt. Sounds a little like a contraction?
If we know at the core of the money discussions that debt isn’t a good thing, why do so many people have it? Do we really realize that debt is bad, and do we assume that debt is a part of life, something no one can escape and thus we accept it for what it is, just as routine as brushing your teeth or showering?
The fact is debt is bad, and we all know it. But what tends to get in the way of that thinking is our wanting to buy what we can’t have, own what we don’t need or have the things that others do with the means to own it.
Debt gets in the way of having the things we want to have that matter, the kind of good debt we all want: buying a house, owning a car or being able to fund our education wants and needs. That type of debt is what would be considered a need, something that is going to either gain in value (house), allow us to be more efficient (car) or earn more money as we continue to learn (education).
Having debt or buying unnecessarily and not having a controlled, followed budget also keeps you from retiring on time (or early) and building a savings account in the event that something unforeseen happens, such as medical expenses, home repair or car issues that allow you to have the money on hand to fix or pay these, rather than borrow more money.
Probably the most daunting element of debt, and why we should think longer and harder about just how much it is a negative: stress. Debt and having it is extremely hard on your nerves, which in turn can cause ailments, medical issues and other relatable problems that you can draw back to when you’re fretting over how you’re going to pay your bills from one month to the next.
Yes, we know debt is bad, but yet we give it somewhat of a free pass. We take debt as a part of life we just have to cope with, rather than viewing it the way it should be, and that is as something we all should be striving to eliminate once and for all.