The Hidden Costs of Debt

by Brandon Eley ~ September 20th, 2009. Filed under: Tips and Tricks.

I stumbled upon this excellent post by Josh Kaufman at The Personal MBA. This is exactly how I feel about debt… with the exception of a mortgage or reasonable car payment. If it’s not going to make you money, you shouldn’t even consider financing.

Check out “The Nefarious Hidden Costs of Debt” at The Personal MBA… it’s a great read.

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5 Responses to The Hidden Costs of Debt

  1. Stephan
    April 21st, 2010 at 10:36 am

    Couldnt agree more with this, why finance anything unless it makes money for you. It is just plain dumb to purchase a tv and pay for it over 60 months with a total payout likely double of what it would have cost in cash. Keep these costs in mind when you are in the store looking at your dream TV for the big game!

  2. Josh Kaufman
    June 28th, 2010 at 4:00 pm

    Glad you liked the post – thanks for spreading the word! :-)

  3. Edward
    December 12th, 2010 at 10:27 pm

    Great advice. I’m a little late to this post but still the information is good. It makes me want to invest in credit companies. Paying twice for something is not that great of an idea.

  4. Yadgyu
    March 6th, 2011 at 11:51 am

    Debt is a part of life. 

    The sooner you realize that, the less time and money you can waste trying to eliminate it. The debt really isn’t the problem: the worry about debt is. As soon as you become ambivalent to your debt, the better quality of life you can live.

    Besides, being debt-free is not going to make you rich. Many rich people are in debt and they even manage to get richer while being in debt. The fantasies about wealth were written decades ago. You NEED debt in order to get rich!

  5. Brandon Eley
    March 6th, 2011 at 4:10 pm

    Yadgyu,

    How does one waste money paying off debt? Debt isn’t the problem? What have you been smoking? Sure, you can ignore your debt, become oblivious to it… you may even seem to have a better quality of life as you pile on the debt. But, sooner or later, it’s going to have to be paid back.

    I’m not saying ALL debt is bad, but you won’t find many millionaires deep in credit card or other consumer debt. Why would you use debt if you had the money to pay for something? Why pay interest to a bank when you could be earning interest?

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