“There’s no such thing as good debt.”— The Minimalists
Many people think debt is a friend, an ally that helps you fulfill your needs and wants. This is far from the truth. Debt is your number one enemy; it’s incredibly toxic for your financial life.
When it comes to debt, develop a mindset of extreme opposition. Here’s what I’ve noticed, you borrow a little amount here, a little amount there, and soon those little transactions amount to a mountain of debt. If you say yes to debt once, you’ll keep saying yes to it. And if you’re not vigilant about your monthly expenses, debt will multiply due to its interest rate, and push you further deeper in the hole every month. You don’t want to live in a financial hole, do you?
Change your mindset about debt and think of it as a parasite that if given the chance can deteriorate your financial well-being. Cultivate the mindset of getting out of debt as soon as possible, and staying out of it no matter what.