3 Myths About Debt

Three myths about debt.

Myth number one, good debt verse bad debt. This notion is a complete myth because it assumes that some debt is good. The good debt argument generally revolves around borrowing money against assets that gain value.

Assets such as a loan on a home is considered good because the value goes up over time. This myth has been revealed recently because housing prices have taken a beating especially in Phoenix, Arizona.

Some folks have watch their homes reposed because they couldn’t afford the payment and the values have been declining. For most consumers a home is about the only asset that fits this so called “good debt” argument.

Myth number two. Some debt is okay. Why in the heck is some debt ok? The argument is because debt allows you to manage your money better and get some things you wouldn’t normally be able to get (basically you don’t have the money so you borrow it).

Myth number three. The feeling that you are richer by having credit cards. The fact is you are not richer by having credit cards. The average credit card purchase is nearly 30% higher than if you pay cash. That 30% more is in the form of debt.

The secret the big banks don’t want you to know about is the myth that debt is some how good. The big banks don’t want you to understand debt because they make a lot of money in interest off your debt. The big bankers have you locked up with heavy chains because you owe them tons of money.

The real truth of the matter is the big banks have figured out a way to loan you endless money and make you feel good about borrowing that money. The truth is you don’t even realize how bad it is until one day you wake up and smell the coffee. The coffee you smell is the realization that you are about to go under and that old saying, “I owe, I owe, so it’s off to work I go”, is about you.

Become one of the minority 20% of your fellow countrymen and pay off your debt so you can do what no one else will do.

David…