Debt: The Original Four-Letter W*rd

Debt is like a disease. It spreads, it grows, it gets you down, and can lead to all kinds of hardship. So, when asking the question: “Is debt a four letter word?” The answer is Yes, both literally, and metaphorically. There are several reasons you could consider debt a four letter word. Here are a few:

The first, and biggest reason debt should be considered a four-letter word is that in its most basic form means that you are paying more than the face value of money in order to have it now. When you look at it in those terms, debt appears to be a pretty terrible idea. In fact, if people realized what their actual price was for things, they would probably be a little slower to buy on credit. The fact that the appeal to have it now, pay later is so strong, and thus so deceptive, is one of the reasons debt is most definitely a four letter word.

The next reason that debt is a four-letter word is that debt reduces your freedom. When you have financial obligations in the form of debt, your ability to enjoy life, and spend freely, is greatly limited. So is your ability to pursue your desires. If you owe money on a car, for example, you can’t quit your job to pursue your artistic desires, as you have to have something to pay the bill with. Of course, these are not the best examples of loss of freedom, but the fact is, freedom is diminished when you have debt.

In addition to the loss of freedom, and the heavy obligation and responsibility that comes with debt are the fall-outs and effects of it. Debt adds stress to your life. When you have large amounts of debt, it can be stressful as you feel at the mercy of your employer. If you get fired, if something unexpected happens, or if you just don’t have enough to make ends meet, it can cause huge stress. This often affects relationships negatively. One of the leading causes of divorce is money issues. When a spouse overspends or debt gets out of control, it often causes a great deal of commotion in relationships. Thus, avoiding it means avoiding a lot of stress and fighting.

Debt makes it hard to get a better life. When you are working to progress in life, and you trap yourself in a debt cycle, it can be hard to ever get out of it. Thus, when you want to buy a bigger house, or move on to a better lifestyle, you can’t because you are working to pay your creditors instead of investing, or doing things to make your money work for you. This means that your ability to ever achieve wealth, or become financially free and independent disappears. This is not what people want in their life.