Don’t Like Debt, Not One Bit

debt-ball-chainSigning a legal contract and promissory note to borrow a specific amount of money at a specific interest rate over periods of time happen each day. It is what makes banks and investors wealthy and what affords us the opportunity to purchase things like homes, cars and other things that we simply don’t have enough money to purchase outright.

I have done it, you have done it as it seems the world revolves around this industry of banking. I really don’t like it much as I always feel that the amount of hard earned money I pay out each month in the form of interest is money that is simply being thrown away. But what can I do about it? I certainly don’t have a few hundred thousand dollars sitting in my bank account to purchase a home.

This my personal belief when it comes to borrowing money and I know that it is not the same belief of most. I believe that once I enter into any type of contract where I must pay back money in which I have borrowed, it is important that I do it as quickly as possible. I could take out a 5 year loan to buy a new car and be quite comfortable with the small payment each month but living with the fact that I am still in debt absolutely drives me crazy. So instead I figure ways to add as much money to my monthly payment as possible. I do this each and every month until the debt is paid in full. I do the same with my mortgage each month.

Over the years the act of borrowing money has become less personal and more business like, but for me it is still very personal. It’s like borrowing a few hundred dollars from a friend and I have been in this situation a few times in my life. When a friend out of the kindness of his heart has enough trust in me to know that the same amount of money they lent me will be returned as promised then I call this a very personal act. It is my obligation to do the right thing by paying back that money as quickly as possible. This is the same way I feel about borrowing money from a bank. I don’t like being in debt… Ever.

What about credit cards? I have one that I use for many things. A bill comes at the end of the month and I pay it in full. It is a convenience as a throughway of moving money from my bank account to whatever it is I am purchasing. Unfortunately these days not all things are easily paid in cash so tools like credit cards become the norm. The secret to having a credit card is to make sure that you never make any purchases that you can not pay off in full when the bill arrives. It is too easy for some folks to make a purchase they cannot afford and then pay the credit card off a little bit each month at a painstakingly high interest rate. Wasted money. With a little patience in putting away enough money each month to reach a point where you have enough money to purchase that item is the way to go. Credit card companies depend on the belief that you want it and want it now and are willing to pay the interest to get it. I don’t like debt, not one bit.

About SimpleLivingOver50

At 53 years old I am starting to realize how life changes both physically and emotionally. I strive for a life of simplicity. I am winning the battle with type II diabetes, created a plan to have all debt paid off in 4 years including the house, taking advantage of every opportunity to live life to it's fullest through adventures in nature, hiking, biking, loving and learning.
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22 Responses to Don’t Like Debt, Not One Bit

  1. The Observer, a UK national Sunday newspaper, came out very strongly today for paying back extra on debts. For every £1 paid off the capital early, there are years of interest you don’t have to pay! Go for it! Will.

  2. Good read thank you 🙂 very simple. We view debt in the same way as far as I can tell

  3. What makes me crazy is 22% interest on credit cards.

  4. gitfitsite says:

    You are so right, and debt can have a hold over those who indulge. I also use credit cards and pay them in full each month. From time to time I have taken advantage of 0% interest credit from places such as Dell, but usually resent that commitment down the road. Good post!

  5. kkeevins says:

    Been down that debt road — never again! I have a Capital One Venture card which I use for everything and pay in full at end of the month. Bonus is that I accumulate miles. This is an important perk for me. Great post Billy!
    –Kathy from:

  6. In addition to paying 22% interest for the privilege of borrowing money, often we end up paying all that interest on stuff that is long-since broken,outdated or forgotten. Bleh.

  7. I agree that debt is no fun. I’m working hard to pay mine off. I find Mr. Money Mustache very inspirational. You should check out his blog.

  8. wisedrug says:

    Great post. When I talk to most people about my disdain God debt they stare at me with confusion. Glad you feel the same way.

  9. New Journey says:

    I love being debt free, have been for over 10 years….a very free feeling…if we can’t buy it outright, we don’t buy it, don’t need it….nothing is worth going into debt over, nothing!!! for us anyway…our mortgages are paid in full and no car payments…w so have a credit cards…Aarp has given us a card, no annual fee and we get money back with every purchase….last year we made over 700$ in reward cash….helped pay for the bill….love being in charge of our lives right down to the very cent!! kat

  10. geekkat says:

    Absolutely hate being in debt. Hence we do the best we can to avoid it like the plague…lol!!

  11. juantetcts says:

    Haven’t used a credit card in seven years. The secret for me, is not using them at all, had to learn that the hard way!

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