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*This post may include affiliate links. We get a commission if you sign up with a partner; this commission is at no cost to you.(Last Updated On: February 13, 2019)
So let’s talk about debt ba-by. Not sure if you’ve seen it, but there’s a huge crusade right now of pay off stories.
People who pay off hundreds of thousands of dollars in debt share what they’ve done. I’ve even shared my own story, and consider myself part of the crusade trying to inspire people with what’s possible. Don’t get us wrong, these are all insanely cool stories.
These stories, and even my own, should only be used as motivation to figure out what is best for you.
Someone with a family of four once asked if it was necessary to eat beans and toast for a few years while they paid off student loans.
Honestly — no. It’s not necessary if it’s not the right move for your family.
Having debt isn’t all bad.
Being debt free isn’t a requirement for being stable.
Your mortgage is debt, your auto loan is debt, your student loans are debt, but it’s *usually* pretty affordable because the interest rate is low. In the case of your mortgage or auto loan, it’s also for an asset.
The situation where things can get bad is if you’re having trouble making the payment or the interest rate is insanely high. I’m talking 20% to 100% APR or higher. You may find astronomical interest rates on credit cards, pay day loans, personal loans, etc. These are the type of things that you may want to get to work on sooner than later.
What you should not be doing is busting your butt to pay off all student loans or your mortgage in a record time to beat a random story that you saw someone share on the internet.
Do what works for you!
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