5 Reasons We Don’t Like Debt

In case you missed it, here’s our final debt free video! Our initial debt free video was in 2016 after paying off $112,000 in student loan and credit card debt within 28 months. Our most recent video is for selling our rental property – a $178,000 relief!

Now, we know some of you are thinking why we’d let go of a rental property that could gain us money. Well, herein is where you’ll see that we truly do not believe in debt – of any kind!

Our journey with debt has not been a good one – at all. We both walked away from college with 5-figures of student loan debt which collectively equaled $108,000. Talk about living financially ever after. This was on top of the rental property and credit cards. Chokehold. We quickly realized that debt was not going to give us the financial freedom and prosperity we longed for ourselves and our family. We wanted to create a financial legacy. That’s when our intense debt freedom journey began.

It wasn’t easy. A lot of things worth it in life aren’t. But we wanted it bad – really badly. We were willing to make any adjustments necessary to kick debt to the curb fast. Jason and I had our “why” in front of us to guide our spending and we didn’t let anyone (including ourselves) get in the way. Some of our family and friends laughed at us and joked, but that didn’t deter us. Many of those same people are now our biggest cheerleaders. Why? Because through our example and through the ridicule they saw something greater. Transformative.

Since getting out of consumer (student loan and credit cards) debt, we’ve been able to give like never before. Now that we’re totally free, we can give even more. We only give as the Lord leads and boy, does it feel good. There were times on our debt free journey where we gave, but it was limited due to lack of finances. Those restrictions are now gone and we give without thinking about a bill looming over our head.

We just cannot endorse debt after our experience with debt. We’ve just experienced too much freedom to endorse a lifestyle of debt. Once you go in the black, you don’t want to go back. Here are some of the reasons we don’t like debt.

5 Reasons We Don’t Like Debt

1) Debt Is Bondage

We believe that no man should owe anyone or anything but to love them (Romans 13:8). We equate debt to being an ox in captivity – you can only go where the owner leads them. It’s bondage. We believe that everyone should be able to roam freely with their finances without having to owe anyone.

2) Debt Stunts Your Ability to Gain Wealth

Managing finances is all about math – adding, subtracting, dividing and multiplying. When your money is subtracted (by interest, fees, etc.), you aren’t gaining. Money subtracted isn’t money earned. The sooner you eliminate debt, the quicker you can build wealth through addition and multiplication (via interest by investing). There are times we think about how we could have used the $112,000 in student loan and credit card debt plus mortgage payments and business costs to build wealth. We’d be a lot closer to buying a house in cash and building wealth. We’ve learned a painful lesson that would’ve been better taught, but we realize our experience is why Wallet Coach exists now, and for that, we’re grateful.

3) Debt is a False Sense of Security

Holding a card with a credit card limit is not security. It’s a false sense of security. The credit card companies make it seem like they are doing you a favor by allowing you to spend your “own” money up to a certain amount, but you have to pay it back – sometimes with interest. Also, you’ll likely spend more when you use a credit card, so you’re not just giving money to the credit card companies, but funds that you might not have spent if you had used your own money.

4) Debt is Living Beyond Your Means

In line with giving a false sense of security, you are likely to spend more than you have when using a credit card. So, using a credit card can mean living beyond your means. If you’d like a more expensive lifestyle than you can truly afford (without credit), then consider gaining more income through a higher paying job or a second job or side hustle. This doesn’t have to be permanent, but it’s to get you to your financial goals of having your own money to spend and building wealth.

5) Debt Stunts Your Hustle

If you want something, you’ve got to go out and get it. The American way of life is about hustling. If you always have a credit card to back you up, then you’re less likely to work harder to make more money. If credit cards weren’t available, I think many would learn contentment, work harder to get what they want, and delay gratification by saving up for what they want. Instead, many people use credit cards as a crutch and first option when it shouldn’t even be a consideration. Having an emergency fund can prevent credit card usage.

We know that there are always exceptions as some people like to use their credit card to gain rewards points, build their credit score, etc. However, we ask that you truly weigh the pros and cons of having a credit card and why you think it’s a security blanket. I wish we would be more inclined to question why we follow the status quo instead of going along with it. There’s a reason rich people are rich – they ignore the status quo. They refuse to be normal. By “rich”, we don’t mean those who appear wealthy, but those who truly have a positive net worth and owe no one. If we’re honest with ourselves, we’d rather not be owned and in financial slavery. Debt will never provide financial security.

Our Desire For You

We desire that you truly owe no man anything but to love them. We’ve all received gifts and we’ve all given gifts. When we give, there is this unbelievable joy that you were able to help someone in need or bless someone else you love. What could we do if we all could just give away our money? What contributions could we give to society? Maybe we’d all work in jobs we love, travel the world, love on people around us more and commit fewer crimes. Perhaps we’d live out our God-given purposes on a whole new level. Perhaps we’d be truly free – to live.

What are your thoughts on debt?