13 Reasons Why Debt is Bad Story

Debt. When you hear the word debt it definitely brings up negative feelings. But not all debt is a bad thing. In fact, most experts agree that there is such a thing as good debt. So, here’s why debt is bad.

Good Debt vs Bad Debt

So what is the difference? In a nutshell, good debt is when you owe money for something that will be financially beneficial in the long run.

Unfortunately, we live in a debt-driven society. Every other commercial or billboard advertises credit cards to fund your every want. Quick loans or paycheck advance businesses are plentiful. Even online purchases can easily be put on “credit” payments.

Debt Driven Society and The Drain on Your Purse

How Does Being in Debt Affect You?

Being in debt will give you the temporary pleasure of getting what you want, when you want. But debt has numerous detrimental effects that might surprise you.

When you look at debt over your loan repayment period, the overall cost of the item increases. For example, if you finance $20,000 to purchase a car, with a 3.99% interest rate for 4 years, by the end of the loan you have paid $21,600 for the car.

Debt causes you to spend more

Kills creativity

Have you ever thought about how the saying “necessity is of the mother of invention,” applies to finances? When you are living on a tight budget, you often have to get creative to make things work.

Keeps you from reaching financial goals

One of the most detrimental ways that debt affects you is by blocking you from reaching your financial goals. Debt comes into our lives in such a sneaky innocuous way that it doesn’t feel as bad as it really is.

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