According to the Concise Oxford Dictionary, debt can be defined as money, goods, or services owing or being under obligation to pay something. Debt has been around for a very long time. There are references to debt that span all manner of literature, from religious texts to Shakespeare. Today, debt is so interwoven into the tapestry of our lives that it seems almost inextricable.
Many of us take on debt in order to acquire something in the present moment that will be paid for in the future. So there are aspects to appreciate about it; it gives us the ability to have access to things that, under present circumstances, we may not be able to attain, be it a house, car, education, paying health bills, medical emergencies, clothes, or accessories. Debt can give us the means to get through difficult times and circumstances; it can help propel us forward.
However, everything comes at a cost, and nothing is free, even if there is the illusion that it is.
If our income is limited and our financial means are constrained, debt can loom over us like a dark shadow, ever present and pervasive, inhibiting our ability to think clearly or move lightly and confidently in our lives. It’s always at the back of your mind. It complicates life and carries a high cost, especially for those who aspire to greater simplicity and movement in their lives. It costs us money, time, emotion, and energy, and it can take us down a dark rabbit hole if the debt is too much and too overwhelming.
Before getting into debt of any sort, ask yourself serious questions.
- Can I find a simpler, less costly alternative?
- What are my choices?
- Is this my only choice?
- Do I really want to go down this route?
- Where is this leading me if all goes well?
- Where is this leading me if this does not go well?
- How am I going to repay this debt?
- Do I have the capacity or capability to repay this debt?
- What is it going to cost me in all aspects of my life?
- Do I have a sensible, practical, and efficient plan?
- Am I planning to just wing it?
- If I default on this debt, what is it going to cost me, and what will be the consequences?
- If I default on this debt, what is it going to cost the other person or organization?
- Who really pays for my debt if I am unable to pay it?
- Is debt going to affect my ability to function in a healthy way with my family or work?
- Do I really want to go down the rabbit hole of debt?
- Does what I’m going into debt for provide for my needs or wants?
- Is this really necessary?
Decisions matter; think carefully and choose wisely; they impact our lives and have a domino effect.
“Chains of habit are too light to be felt until they are too heavy to be broken.”
Warren Buffet
Proverbs 22:26–27 (NIV)
“Do not be one who shakes hands in pledge or puts up security for debts; if you lack the means to pay, your very bed will be snatched from under you.”
Books
- The Total Money Makeover, Dave Ramsey, 2003
- The Millionaire Next Door, Thomas J. Stanley, 1996
- The Richest Man in Babylon, George Samuel Clason, 1926
- Goodbye, Things: The New Japanese Minimalism, Fumio Sasaki, 2015.
- The Gentle Art of Swedish Death Cleaning by Margareta Magnusson