ditching debt

debt is a part of our lives. especially for the middle class. borrow for college. borrow for a car. borrow for another car. borrow for braces. borrow for a new tv. 12 months at zero interest. it’s cheap money. interest rates are low. save 15% at banana republic when you open their credit card. save 5% at target when you open theirs. it’s everywhere and we’re used to it.

we’re ditching debt and it’s difficult. we want a new car and interest rates are low. why not buy? we want to bail out of our cheap apartment and buy a house. we can and banks will loan us an obscene amount of money at a historically low interest rate. we are allowed to rack up an amazing amount of debt. entire industries rely on us doing so. banks, credit cards, debt collection, housing, automakers, department stores. they all rely on debt. some organizations have realized that the debt on their products is more profitable than the product themselves.

it’s overwhelming to consider that there are over $1.3 trillion in student loan debts in the u.s. today. $886 billion in credit card debt. check out this article for more details: http://www.nerdwallet.com/blog/credit-card-data/average-credit-card-debt-household/

when’s the last time you paid cash for groceries, for dinner out, for a movie? do you know people saving up and paying cash for cars or even houses?

my wife and i are recently debt free. it’s been powerfully freeing to pay off student and auto loans. we’re now free to dream of what’s next. we now have the freedom to take risks and to dream even bigger. we’re no longer stuck. i wouldn’t have known the feeling had we not paid everything off. we made huge sacrifices. we lived on a tiny budget. we chose a tiny apartment when we could easily have bought a house. we chose discipline over impulse. it’s been tough but totally worth it.now, we look ahead to our next adventure in our relationship, travel and career. we do so with freedom as we have no weights around our neck. debt is handcuffing so many of my family and friends. there is freedom to be had, but it’s going to take sacrifice, discipline and bucking the status quo.

borrow some advice. quit borrowing money.

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