top of page

Debt - A Tale of Destruction

Debt is a destructive force that snakes its fingers into every area of life. It sneaks into your life in small amounts, and the next thing you know, your entire paycheck is consumed with monthly payments. It can destroy your marriage, your health, prevent you from pursuing your dreams, and prevent you from creating wealth. The most valuable piece of information that I have ever received regarding finances is this: Get out of debt, and stay out of debt. Living by this advice is critical to creating financial freedom and building wealth. The most difficult part of this process is breaking down the mindset that debt is an acceptable, and required part of life. We will discuss why you should avoid debt by examining how debt is destructive to your quality of life. We will then develop a plan for you to become and remain debt free.

What is debt?

Debt: 1. Something that is owed or that one is bound to pay to or perform for another; 2. A liability or obligation to pay or render something; The condition of being under such an obligation.

Why is debt so bad?

  1. Debt keeps you focused on the past - Forces you to use your money, time, and energy to pay for your past decisions.

  2. Debt reduces the power of your money

  • Interest payments: Money is thrown away by paying interest to the lender.

  • Forfeiting growth from investments - Money that is invested produces more money. The presence of debt reduces your ability to invest into avenues that will allow growth.

  1. Debt reduces the power of your time - Most people earn money using time - Paid a wage based on hours, production, or task. Not only is money wasted, but the time used to earn the money is wasted. .

  2. Debt is deceptive - Creditors use tactics such as low payments, cash back rewards, airline miles, and low introductory rates to trick you into spending money that you don’t have. We trick ourselves into buying more than we can afford. These factors force us into paying interest.

  3. Debt puts strain on your marriage and relationships - Conflict, disagreement, resentment, distrust, shame, bitterness - These are all things that are caused when the presence of debt shows up in a relationship. It is much more difficult to pursue your goals, and build a future together when so much time energy and money is unavailable due to debt payments.

  4. Debt limits your ability to create wealth

  • Unless you have an astronomical income, your wealth will be generated by your investments, not strictly your income only. However, your income is your most powerful wealth building tool, and it must be available to invest in order to generate wealth. Wealth creation is reduced when your money is tied up in debt and other liabilities because this leaves little or no income to invest.

Related Posts

See All
bottom of page