Is Debt Worth It? Does It Matter?
Up to the point that my life began to change for the worse, I had never considered the worth of debt. Sure, like everyone else I’d felt the consequences of debt: less disposable income; having to work harder just to stay stationary; and the niggling feeling of not quite owning whatever I was supposed to actually be enjoying. But did I ever stop to consider whether debt was worth all that?
Of course not. Debt is just the way our society works. We want things now, and we have them now. Does it matter if we might still be paying premium, hard-earned pounds for them long after they’ve depreciated to the point of being worth a fraction of their purchase price (in the case of cars, for example)? Does it matter that the high spec laptop you got on a 4 year finance deal 3 and half years ago is now just decidedly average, but you are unable to afford to upgrade it because you’re still paying premium for the old one? Does it matter that those home improvements you put on the credit card a year ago with the intention of paying it off in a month or so are still around, costing you hundreds in interest payments? Are you enjoying those improvements, or are they feeling like an elephant tied round your neck?
By and large, I’ve come to the conclusion that yes it matters, and no, debt isn’t worth it.
You can have all these things without the debt negatives by putting the cash you’d pay the finance company in your own savings account. Overpay yourself, make micropayments, work a little extra overtime here and there. If you want it enough, then pay with your own cold hard cash and not somebody elses. That new laptop or car is yours. You own it, and you won’t be making payments on it for the next year or some multiple thereof.
Of course, this isn’t always possible, but by and large it should be your first option before reaching for the credit monster.
Sounds a little preachy doesn’t it? But it makes sense. It also makes you double-check yourself. Buying things on credit is easy, and deliberately so. It’s just £50 a month here, £125 there. But these regular increased outgoings month in, month out, quickly make you poor. When you come to part with your own money though, take that 10-second pause and consider “do I really want this?” or could you make do with something a little cheaper? Do you need it at all, or is it a pure want? If after that 10 second introspection you still want to do it – go ahead. You need it, you earned it, you get it.
There are scenarios where debt can be worth it. Few people can afford to buy a house right out. Sure, a mortgage costs you a fortune over the term, but you get your home out of it. Outside of this realm, I still struggle to convince myself that debt is worth the price it requires anymore.
And I don’t just mean monetary.
Related Posts- My Financial Meltdown: Part 2
- Dig Yourself Out of Debt: Psychology 101
- Patience is a Virtue
- My Financial Meltdown: Part 3
- Dig Yourself Out of Debt: Spend Less Than You Earn
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