Consumer debt provides no value other than allowing you to consume more goods and services than you can afford.
How does consumer debt work? By spending your future money today and paying it back later.
The worst part is the fact that you pay other people interest when you put yourself into the horrible position of owing consumer debt.
In order to live a financially successful life, you must swear off consumer debt for good. If you currently have any consumer debt, that means you need rid yourself of it as quick as you can.
How quick is that? As fast as you would stop, drop and roll if you found yourself on fire. Immediately. After all, consumer debt is essentially the financial equivalent of being on fire.
Now I realize that you won’t likely be able to pay your consumer debt off today in full. Instead, commit to getting out of debt and start your consumer debt free journey today. I’ve put together a series of posts on how to get out of debt, and I highly suggest you check it out if you need some help getting started.
Consumer Debt Sucks
Not convinced that consumer debt sucks yet? I can understand your skepticism. Our whole lives we’ve been brainwashed by marketers that want us to consume their goods and consume as much of them as possible. That is their job, to make their companies money. However, their best interests aren’t always in line with your best interests.
An example of how marketers don’t have your best interests in mind is America’s obsession with cars. TV shows are flooded with commercials enticing you to buy a fancy car. They show you how this brand new car will make your life better. The best part is they show you how you can get a car with little money up front and a “low monthly payment”.
Why would you need all of those fancy features of a new car? Will they really make your life better? Probably not. The whole point of a car is to transport you from point A to point B. Instead, the markets want you to buy bigger, better and fancier cars so their companies make more money.
If you fall victim to their marketing and go into debt to buy their cars, you’ll spend more money on a car that fulfills the same basic purpose as a cheaper, reliable used car would. That and you’re stuck with a consumer debt payment for anywhere from 3 to as long as 8 years! Yikes!
Luckily, there are some benefits to not buying the fancy car and incurring a ton of consumer debt in the process.
Benefits of Being Consumer Debt Free
When you don’t have consumer debt, you don’t have to keep making payments on things you bought in your past. When you don’t have consumer debt, you will have freed up a part of your monthly income most people never have access to in their lives. This extra reclaimed part of your budget will allow you some great financial freedoms.
Avoiding consumer debt will free you from some of the biggest financial stresses you can encounter. You won’t be constantly reminded of the bad financial decisions you made in the past with your monthly debt payments. You don’t have to stress about figuring out a way to juggle your consumer debt payments and your normal bills like electricity, water and your rent or mortgage. Overall, life will be easier without consumer debt.
What do you spend your money on if you don’t have these debt payments? As we learned in a recent post, you shouldn’t spend everything you earn.
Instead of spending the money you would normally allocate to repaying consumer debt, you can use that money to get ahead financially. You can invest for one of many potential goals. You can invest or save money for your next car, a down payment on a future home, you child’s education or for your future retirement!
What type of consumer debt do you currently have and what’s your plan for getting rid of it? Are you ready to no longer have these debt payments and free up part of your monthly budget?
Photo by: Mike Poresky Text added by: Lance Cothern