Nathan seems to think there are good kinds of debt. Dave explains why he feels this is wrong, and how debt impacts your life in the present and in the future.Show Transcript
QUESTION: Nathan asks Dave why he believes all debt is bad. Dave explains his philosophy, the ramifications of debt, and how it impacts a person’s quest for financial peace.
ANSWER: When you ask a question that’s really a statement, it’s called a passive aggressive question. From the way you asked the question, it sounds like you’re letting me know you think some kinds of debt are okay instead of asking for my opinion. So, you and I will now argue. Are you ready?
It’s not necessarily a question of what I think. I’m the aggregator of information we’ve gathered while walking with people through their financial issues. I’ve worked with tens of thousands of folks over nearly 30 years, everyone from billionaires and millionaires to broke people, and those in between. In the process, we’ve collected a lot of data through formal research projects.
All that data shows debt is the biggest roadblock between people and wealth. I’m also a Christian. Having read the Bible, and what it says about money, I can tell you there’s not one place in there where it says debt is a good idea. All that information leads me to one conclusion — debt is not a positive thing.
So, get out of debt. If you hate it, and I’m wrong, you can go back into debt. But having no debt makes it much easier for you to become wealthy and be more generous.