Frugal | Why I want to get out of debt

Why I want to get out of debt

Posted by Lynnae on July 13, 2007

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In today’s society debt is as American as apple pie. According to CardTrak, a survey of 55,000 people revealed that the average credit card debt is $9,659 per household. 88 million households use credit cards, and 61% of them carry a balance from month to month. I’m statistically average with a credit card plus student loan debt of $9233. So why would I want to get out of debt?

I don’t like owing people. I don’t like the fact that if my husband loses his job (which actually happened recently), and we can’t pay our debts, collection agencies will be calling me day and night, hounding me for money, and rightly so. One fact that gets lost on people today, in my opinion, is that when you borrow money, the stuff you buy with it isn’t technically yours. You OWE somebody for it.

I’ve heard lots of people complain about creditors hounding them, and while I agree that it’s annoying and that the practices of some collection callers are questionable, they are doing their job. If I owe them money, they have every right to collect it. I really don’t have a right to complain, unless they’re calling me in the middle of the night or interrupting my work.

Another reason I want to get out of debt is I hate paying interest. It bugs me to think I’m paying more than fair market value for some item I purchased, just because I had to have it now. It’s better to wait and save, and then only pay the asking price.

I know some would disagree with me. I read an article at SmartMoney entitled Being Debt Free Isn’t Always All It’s Cracked Up To Be. The author felt that there were advantages to taking on debt, like building your credit, gaining tax advantages from your mortgage, and having more money to put toward retirement if you don’t put it toward debt. I can see where she’s coming from, but I don’t agree with her.

In the last 5 years my husband has lost his job twice. My mother was diagnosed with leukemia at age 55. My mother in law had to go on permanent disability, because her health was so bad, she couldn’t work. You never know what the future will bring. Your means of earning a living can disappear in an instant. I’d rather have my debt paid off, so the creditors don’t come looking for me. THEN I can focus on doing the stuff I want to do and buying the stuff I want to buy. And it will be MINE.

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Comments

3 Responses to “Why I want to get out of debt”

  1. Tricia on November 25th, 2007 9:53 pm

    I’m sure you know DAVE RAMSEY, but if you don’t check him out at Daveramsey.com Your thinking of getting out of debt is right on. Don’t listen to other people. My hubby and I are doing the same thing, paying off cc and paying cash for Christmas gifts!! We cut our cards up!!! I love the feeling and I really want to change my family tree. I have 7 year old twin boys and I want better for them.

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