WHAT IS DEBT AND WHY IT'S BAD - The Debt Free Journey

This article may include partner links. If you click, visit or buy from these links, we will receive a fee or products from the companies mentioned in this post. Please read our disclosure policy for more details.

DEFINITION

According to Merriam Webster’s definition, DEBT is an ‘Obligation’ or something ‘Owed’.

It’s an oversimplified definition that in today’s world has lost its true meaning due to big business’ efforts in the last 60 years to make it mainstream, acceptable and ‘normal’.

People don’t realize that debt is really an ‘obligation’ that in most cases turn into a great burden.

You can’t turn on your TV, browse the internet or even blink without some kind of business selling you not only stuff but easy credit in order to get it ‘now’.

WHAT’S THE BIG DEAL?

Today’s generation, in essence, has become the ‘Now’ generation, but in a bad way. With the advent of easy credit, we accumulated stuff in merely months compared to what it took our parents and grandparents decades to acquire.

A nerd wallet article in December 2016 suggests that the current average household credit card balance has risen to $16,748, this compared to $8,299 in 2008 according to the balance.

People are getting sucked in at an alarming rate to getting stuff ‘now’, myself included, that it has now become a crisis of massive scale similar to the just concluded housing crisis 8 years ago.

I believe that if left unchecked, this will not only result in another wild economic crash but also endanger lives and futures of generations to come.

IS IT THAT BAD?

Well to be clear, not all forms of debt is bad; after all, not everyone can afford to buy a house nowadays in cash, so I would concede that debt via a home mortgage can be a tool for individuals for wealth creation.

Every other debt outside of a home loan on the other hand, can be potentially bad, especially consumer credit card debt, which can greatly impact families who are over leveraged (see household debt info as of 2016) and unable, due to one reason or another, to keep up and pay off these debts.

GOING BACK TO THE DEFINITION

It becomes an ‘obligation’, to pay back with interest to the tune of up to 30% sometimes that turn into bondage that people like myself become trapped in.

I know it all sounds gloomy and hopeless but I believe there is hope, especially if like me; you’re ready to get mad!!! Ready to say enough is enough!!!

I’m here to say to you, like what I said to myself, it might take a while to journey out of this hole, but by God’s Grace and mercy, and with common sense and perseverance, we will surely get there.