I hate debt

Posted by mapetitechou on Mar 6, 2015 in debt, saving

How do you feel about debt? I have an extreme aversion to debt. I hate any kind of debt, some more so than others. Having the belief that you are responsible for yourself and nobody owes you anything drilled into my head by my parents when I was young, I’ve always had this attitude towards debt. “If you owe money to somebody and you don’t pay back right away, they are going to come after you and break your arm.” I know it’s extreme. (Unless you owe money to the mob then it’s a very real possibility.) But the sentiment is the same. It is not okay to have debt and not pay it off right away, whether you owe a person or a bank. As a kid, I always hated borrowing money from friends. If I did have to borrow $5 for whatever reason (say I forgot to bring money for lunch), I had to pay it back the very next day. Now I don’t think I ever had a personal loan from anyone in my adulthood life.

So with the same thinking, I hate any form of consumer debt the most, like credit card debt. I could probably count on one hand the times I was late on my credit card bill and had to pay the subsequent interest charge. And I would scold myself to not let that happen again. I see any interest charge as money down the drain. That is money that I could’ve spent somewhere else that’s more useful. I never took out a line of credit because I just could not stomach the fact that I had to pay interest on it. The one time I made the mistake of buying my first card with a monthly payment, I saved almost all of my paycheque every month for about 6 months so I could pay off that car so fast as if my hair was on fire. After that, I always paid cash for a car. Never ever financed again.

Mortgage was a necessary evil. I don’t like it, but in this day and age, not many people can buy a house with cash. So my husband and I had to take on a mortgage like everyone else. But I was not okay with just making the minimum payment every month for the next 20 years. We again worked very hard to maximize the payments by doubling up every month and making that 10% lump sump every year. Luckily our mortgage wasn’t a huge one to begin with. We bought our modest house before housing prices started going crazy. So within 5 years, we paid it off completely. That was the best feeling ever when we made the final payment. I felt so free and powerful because no matter what happened we always had a roof over our heads. When you don’t owe anything to anybody, life just has much more possibilities.

Now my “debt” is to my children and to ourselves. I want to set them up for success as early as possible. That’s why we are building their education funds. I’ll chat about education funds in another future post.

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