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.