Debt is a way of life in the good ol US of A.   We really don’t even think about borrowing money for a car, putting the kids braces on a credit card, or even that most productive of home appliances, your big screen-6o months of easy payments-no interest!

Till you are a day late with a payment on payment 59.  Then the interest on the whole 60 months becomes due.

Won’t that day feel like the day the last patient  threw up all over you, after drinking a fifth of cheap wine….

Flexo, at Consumerism Commentary has written a great post on 5 debts to avoid. These include:

1. Pay-day loans-because of high interest.
2. Loans on your expected tax refunds-again because of the high interest rate, These loans are also used to entice people to buy things that wouldn’t ordinary buy-”it won’t cost you anything but your tax refund!!!!”
3. Gambling debts-it is one thing to gamble your money away-another to gamble away money you don’t even have.
4. Rent to own debt-this one gets people, cause they don’t think of it as debt-so they pay what amounts to a high price for an item, that basically is equal to a huge interest rate.
5. Debt on  an item that is going down in value-cars, mobile homes are the two most common items here-although any appliance debt, four-wheeler, boat, …….could qualify.

Now, he goes on to say that student loan debt, and house mortgage debt, and even car debt in occasional limited circumstance is justified.  Now, because the “right” of home ownership is so deeply ingrained in our country, that the thought of putting off  home ownership – until we can pay cash-would seem crazy to most.  So, my feeling is mortgage debt is ok, as long as it meets reasonable  criteria-see this post.

The problem with student loan debt, is that it is so easy to get these days, people borrow money for living expenses, not just tuition-that might mean expensive apartments, bar tabs, car payments, etc.  You wake up the day after graduation, so excited to get that first job, at 40,000 bucks a year-whooo-hoooo.   Then you realize you borrowed 125,000 dollars for that degree, and if you are lucky you might pay if off with your first social security check-forty years down the road.  And no, most student loan debt is not bankruptable-it is yours forever.

That leaves car debt, and I have written so many times about car debt lately, that I am not even going to go there.

So, for those of you who say,”What am I going to do now.  I have been borrowing money to make ends meet for years!”

Well, you are at the right place.  That’s the whole point of  “The Millionaire Nurse”.  To teach you how to make goals, plan your spending, and make the correct decisons that will allow you to prosper for the long haul, rather than just feeling good today!

So think twice about going further into debt.  If I can  make you think twice about borrowing money, before you execute, then I have done my job.  The rest is up to you-Good Luck!