Sir Edmund Hillary failed to reach the summit of Mount Everest on his first attempt. One member of his expedition died and his group was forced to turn back, and supposedly he made this proclamation to the mountain: “You defeated me! But you won’t defeat me again! Because you have grown all you can grow… but I am still growing!”
That is why I always teach people that they need to get out of debt. Unlike Everest, debt continues to grow. It is like the modern day hydra. Cut off one head, it will grow back, sometimes with an extra head. You need to kill it off completely otherwise it will eventually overwhelm you.
Some people wonder why I live a relatively stress-free life. I am not wealthy by any stretch of the imagination. But I have no long-term debt. I am not an indentured servant to a bank. I can’t lose my car for missing a payment because I paid cash for it. I don’t buy things I cannot afford.
When someone advises me to buy something on credit or layaway or to “leverage” something; I interpret that very simply as “Get something now that you do not deserve to have yet.” that mentality always always always hurts someone. In the case of debt, that person is you.
Compound interest has been called the eighth wonder of the world. Unfortunately, for the vast majority of people it is a force working against them. Earning interest keeps wealthy people wealthy. Paying interest keeps poor people poor. Stop paying interest on depreciating items.
Get out of debt. As long as you are in debt, you are not working for yourself and your family. You are not working towards your own dreams and goals. You are just staving off the hydra.