Debt has a way of preventing home maintenance and auto repairs. Debt prevents us from enjoying life. We end up spending half our life working to pay for the interest on things purchased in the past. The pleasure of that item has long been gone, and resentment begins to set in. And should we decide to sell that item to relieve some of the financial pressures, the item is now worth less than half of what you paid for it.
Debt has a way of preventing our children from attending college.
Just think of all that money going out in interest each month. Just think how well that money would do sitting in a mutual fund for our child s education. Debt can cause physical illnesses in the sense that the more debt we incur, the less money we have to purchase proper groceries, which means that we are no longer eating healthy, which in turn allows for minimal to very serious malnutrition issues. There are rumors going around that social security will not be around much longer. If we could take some of that money that we are paying out in debt each month, and apply it our retirement fund, we could have a nice little nest egg when we retire.