The cost of carrying too much debt
As I was building this webpage, it was pointed out that there is no content discussing debt. Touché to the person who caught that. I have a few thoughts regarding debt.
First, not all debt is bad. Taking out a mortgage for a home is not bad, and neither is taking out a loan for a vehicle, in most situations.
However, most other debt is bad in my view. Avoid any other debt at all costs, if you want to win with your investing strategy.
Paying down debt should be a top priority, if you have any today, especially considering most debt is carried with interest rates between 7 and 29%, depending on the type of debt.
With a good plan, getting out of debt is within reach.
If you want to get a clearer picture of just how damaging debt can be, use the Debt Reduction Calculator below. Plug in all your car loans, student loans, credit cards, along with the minimum payments and see how long it takes for you to pay them off. Want to see how long it will take to pay off those student loans and how much it really costs? You can utilize the “Add Another Debt” button to see all your debt calculated in about 90 seconds.
In the Getting started video, I said “time is your greatest ally when it comes to investing”. In regards to debt, time can also be your greatest enemy, so you should avoid it at all costs, if you are able.
After you have plugged in your debt, or even just played around to see what could happen if you took on more debt, feel free to leave a comment below. We would love to hear your thoughts.
