Debt has become so much a part of life that it is often viewed as a necessity. With costs rising faster than inflation, it is not hard to justify financing purchases. Consider 2015 cost of living numbers. The median price for a home is $213,800, the average car sold for $31,252, and the average cost for a year of college was over $30,000. These staggering costs are difficult to save money in a culture that wants everything today.
The truth is, carrying debt in any form has consequences. Wise use of credit will allow you to build wealth and grow your income faster than paying cash for items like a college education or a home. Leveraging debt for these purposes can have positive results.
On the flip side, there is the negative aspects of carrying debt, especially when it becomes more of a burden than a benefit. When you finance wants instead of needs, debt can take control over your budget. When you begin financing disposable goods instead of appreciating assets, you become a slave to debt payments long after the goods have lost their value. Read more