Debt is quite possibly one of the most interesting pieces of personal finance. It’s relatable, as the majority of Americans have some type of debt (credit cards, student loans, mortgage, car payment, etc). But what is really interesting is the way it can polarize the PF world. I mean just look at the title of my blog. It’s pretty clear I’m not a big fan of debt. In fact, I once wrote a post titled “Good debt is for dumb people.” I do, however, realize that MY opinion isn’t the ONLY opinion.
Debt freedom is not a prerequisite for financial freedom. In fact, I’d take out a $20,000 car loan today if it meant I could have $40,000 in the bank six months from now. Does that make me a PF sell-out? Perhaps I should change my blogs name to Lightly Slap Debt In The Face?
Sure, I don’t have plans to go in to debt anytime soon. Yes, I plan to take on a mortgage one day. No, I don’t think you are going to Personal Finance Hell for having auto loans. Yes, I think you’re stupid for having a degree in Art History if you have $100k in student loans. But at the end of the day, what I think/do/say doesn’t really matter for anyone but myself.
I’m not gonna beg you to pay off your car loan sooner, because what you do doesn’t really effect me. Heck, maybe you’ve found some clever way to leverage car debt and use it for financial gain (doubtful, but possible)? Just because I don’t gamble with bank loans, doesn’t mean you shouldn’t.
We are all adults here so I’m going to assume you can make adult decisions and determine how much debt you’re comfortable with. I have no authority to demand you curse the name of Sallie Mae, or rebuke your love of credit cards. Afterall, I’m just an immature dude, with a blog, and REALLY crappy drawing skillz that likes to throw his $0.02 in on the boring world of personal finance.
So now that I’ve gotten that off my chest, I’d like to ask you a few questions. What debt have you sworn off for life? Any debts you plan to repeatedly incur (i.e. car loan)? Do you use any type of debt as a means to become more financially stable? If so, how?