Why Debt is Never a Good Thing

In today's world of easy credit, buy now- pay later consumerism, we are bombarded with debt every way we turn. This isn't surprising as selling debt as a product is quite profitable for companies. In many cases companies make more on debt payments from consumers than they do in actual product sales. Think about that next time your cashier asks if you want to save 10% on your purchase by opening a credit card.
On the other side of this are the giant retailers borrowing massive amounts of money to keep the status quo. We saw this a lot during the 2008 recession and subsequent housing bubble bursting. Those who failed to adapt or had loads of debt to begin with, went out of business when consumers stopped spending. With cutthroat competition and sometimes razor thin profit margins, debt becomes a millstone around the necks of retailers. Now a decade later it's all hitting the proverbial fan for these retailers. We're talking household names like Radio Shack already gone, while Sears and Kmart are both in a downward spiral. Toys R Us is next with complete closure happening in June.
You might be asking what this has to do with personal finance? Debt is normal, what's the big deal? Everyone has debt, so why does it matter if I borrow money for things I need and want? Don't buy into the myth that debt is a tool that smart people use to their advantage. The truth is whether it's personal or business- Debt only works until it doesn't. It's estimated that once a decade the average household faces some kind of major emergency. This means an extended job loss, illness, disability, accident or death that majorly impacts finances. It is not if, but when there is the slightest change in circumstances, debt can bring you (or that giant retailer) down. Remember that debt is risk. Debt is bondage. Debt limits your future. It is that pretty facade masking a house of cards that could fall at any moment. Is that really a path you are willing to take? Trust me. It is not. Having been down both roads, I can tell nothing equals the freedom of living debt free.

Clean Slate

Isn't it funny how life gets busy and time slips away from you? I've been thinking about writing another post for months, but never taken the time to actually sit down and do it... Until now! I've been watching a lot of YouTube lately (which is another reason I haven't been blogging), but several of the channels I watch on a regular basis are financial vloggers. They are all different ages and from different backgrounds and in different walks of life, but the one thing they have in common is a passion for getting out of debt, living frugally and being transparent about the good, the bad and the ugly on YouTube. Watching their stories has reignited my love for helping others win with money. While I prefer to write rather than vlog, I hope I can make a difference for you and your financial position. I want to start by getting back to basics, helping you start from scratch if necessary. A clean slate so to speak. I also want to talk about the deeply rooted emotions we all have about money. So stay tuned for some exciting things to come later this week!