Why aggressively paying down debt can be a bad thing

It’s all the craze these days – “Eliminate debt!” But we don’t stop there. We’ll continue – “…ASAP!!!”   I know, I know. I’ve even written articles about that very topic. I’ve discussed the ridiculousness of interest and how the borrower is a slave to the lender, yadda-yadda. About how you have more freedom without the noose of debt around your neck… I hear ya.   But have we stopped a minute to consider the alternatives?   Or at least some of the consequences that come along with dropping everything to pay down debt? Monica and I hadn’t. “What in the world could be a negative consequence to aggressively pay down debt, if you can afford it?” This was our logical thought process.   One day we realized this may have been maybe the 5th worst financial decision we had made to this point (after investment choices during the GR (Great Recession), […]

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Eliminate ‘bad debt’ (financial pillar #4)

Check out the complete list of Financial Pillars Here   Excessive use, or misuse, of debt is 1 of the top 5 reasons people go bankrupt. Bad debt can also be the harsh instrument by which your paycheck’s take-home, for example, goes from $1,200 to $500 (car payment, credit card balance, a monthly payment on furniture, …). The #1 way to fix your problems with bad debt is to NEVER, under any circumstances, let it into your life.   For some of us, unfortunately, bad debt is already in and roaming around our homes, apartments, and vehicles. What we’ll do here then, is this:   -Review how to distinguish bad debt from good (yes, there is such a thing), -Evaluate ways to eliminate any bad debt already accumulated, and -Make certain we have a plan in place to keep bad debt out of our lives for good.   What separates bad […]

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