In Debt We Trust

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The fiat currency that the United States uses is a system based on debt. After we came off the Gold Standard, this is especially true.

There are many documentaries that explain this, but essentially, the US dollar is created and survives as a form of debt, backed only by the “faith and good credit of the United States”. The dollars that we all hold can no longer be turned in for the equivalent in gold or silver as they could before we left the gold standard. We can own gold and silver, but the fiat currency isn’t backed by these hard metals.

The more debt that each person is in, the more we are a slave to the monetary system in which we find ourselves. We work in jobs that steal away time and life from us so that we can pay our debts every month.

I am personally not debt free, but isn’t the thought of being “debt free” glorious? Does it bring you a thought of that sigh of relief?

Certainly, life happens and sometimes we must go into debt in the form of mortgages, student loans, auto loans, and medical bills, just to name a few.

As of this post, the level of student loan debt is at least $2 Trillion and will only continue to increase. Many people I know have those student debt repayment plans that are based on income. I hear them complaining about those payments and how they are stifled by the crushing weight of this debt….meanwhile, they have photos of seemingly annual, week-long vacations to Europe.

It took me just under 10 years to pay off all my student loan debt. It was a big, scary number – just about $75,000 (possibly $80,000). I would sew and patch articles of clothes up to the best of my ability until I had no choice but to get a new piece of clothing because they were beyond my skill to repair or upcycle any further.

In my instance, it was more important for me to pay off this debt as quickly as I could by comparison to getting the newest gadget or “must have” item in stores. I turned it into a game, but what was the greatest help was when I re-financed my loan with the largest balance from 8.75% daily compound interest to something like 3.75% simple interest. Once I was able to do that – I could get rid of that loan faster.

I know there are some people that get new cars shortly after they pay off the last one. Personally, I don’t see much reason for that. I am sure there are reasons that people have, but I would imagine they are mostly “keeping up with the Kardashian’s” sort of reasons more than any other.

Getting a new cell phone is certainly fun – but the price of these phones keeps going up. I try to use my phone until the point of no return. The last phone I had was literally on a cell phone life support – taking half a day it seemed to charge 10% – as I waited for my new phone to arrive in the mail. I don’t now and have never considered it necessary to have the newest phone that has just come available.

Don’t get me wrong – there are many things that I see in store windows or on Amazon that I would really like to get. But I can usually resist the temptation because I don’t want to pay interest on it, I know I likely won’t use it enough to make the purchase worthwhile, and I likely don’t have the space in my house for it’s storage long term.

Getting out of debt takes discipline and consistency. It’s hard. It requires sacrifice of all those wonderful shiny objects and everything that makes our social media pages “selfie-friendly” so we can show our “best life” and make others believe we are living the Kardashian lifestyle.

Take back control of your life by being as debt free as possible. If you can be completely debt free – excellent! If you have mountains and mountains of debt – anything that you have extra that you can put toward paying it down, do that. Spend money on the necessities and save as much as you can while also paying down your debt. Turn it into a game. That’s what I did – it was my own game of “how fast can I get rid of this debt” and I would celebrate when I decreased that time frame by even a day.

The more debt free you are, the less you are a slave to the credit cards and the companies that make money from the high levels of interest you pay on that debt for things you likely don’t need anyway.

Remember, you want to improve good debt and decrease bad debt.

CLICK HERE to learn about the difference from Robert Kiyosaki.

CLICK HERE for one of the many ways to help you get out of bad debt.

(c) 2019-2020 Disaster Survival Answers

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