Debt is slavery
A hugely important exchange about debt and freedom has been posted the last 24 hours at Claire Wolfe's blog. These thoughts should be shouted over and over again until everybody "gets it." They are so huge that I'm breaking out of my "yah, I'll post it Montag" routine. You gotta hear this Saturday; you gotta remind yourself about it tomorrow and the next day; you gotta etch it in your soul until it becomes habit. And yes, as I eye up my MasterCard and Visa and think about that scissors in my drawer, I confess it's a Truth I need to take more seriously myself.
The key posts begin as Claire comments about the appalling fact that most Americans are "net debtors," that is, we use the cards to live beyond our means. "Have we really become a whole country of high-rollers who live only for today, believing luck (or the government) will take care of us tomorrow?"
Then Silver checks in with the basic truth: "Freedom means, among other things, not being in debt." This is so obvious it escapes us in the press of everyday life. Hate your job? Ready for any kind of change? How often do you hear "I can't afford to," because that person has racked up so many bills the collectors need to be fed regularly, requiring a steady cash flow? The more debt, the harder it is to take a risk, even if the upside of the risk might increase cash flow in the long run.
"The point is, the only way to have a negative net worth, to stay in debt, is to spend more than you earn. Year after year, decade after decade, you consume more than your income. Your lifestyle exceeds your means. Debt is a way of life. It has its attractions: fine food and wine, new cars and exotic vacations. But it is slavery."
I don't know what effect these posts will have on you, dear reader, but my immediate reaction was hell, I can live with this Dell, forget the Mac G-5 until I have the cash ... there's nothing wrong with the '00 Chevy, let's coax a few more years out of it ... what can I sell to pay down these cards to zero ... and where the #%@&! are the scissors?
The key posts begin as Claire comments about the appalling fact that most Americans are "net debtors," that is, we use the cards to live beyond our means. "Have we really become a whole country of high-rollers who live only for today, believing luck (or the government) will take care of us tomorrow?"
Then Silver checks in with the basic truth: "Freedom means, among other things, not being in debt." This is so obvious it escapes us in the press of everyday life. Hate your job? Ready for any kind of change? How often do you hear "I can't afford to," because that person has racked up so many bills the collectors need to be fed regularly, requiring a steady cash flow? The more debt, the harder it is to take a risk, even if the upside of the risk might increase cash flow in the long run.
"The point is, the only way to have a negative net worth, to stay in debt, is to spend more than you earn. Year after year, decade after decade, you consume more than your income. Your lifestyle exceeds your means. Debt is a way of life. It has its attractions: fine food and wine, new cars and exotic vacations. But it is slavery."
I don't know what effect these posts will have on you, dear reader, but my immediate reaction was hell, I can live with this Dell, forget the Mac G-5 until I have the cash ... there's nothing wrong with the '00 Chevy, let's coax a few more years out of it ... what can I sell to pay down these cards to zero ... and where the #%@&! are the scissors?
posted by B.W. Richardson at
8:53 AM
1 Comments:
I agree that debt is slavery but, credit cards are just a tool. They are not intrinsically evil. Provided that you pay them off in full every month, and only use them to buy things you'd buy anyway, a card with a rebate program can actually save you money. Of course, it does generate a paper trail of what you buy, and the Feds have been known to seize such records. Whether you find that a problem is up to you.
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