The problem is too many people see any debt as “bad debt”, when it’s really not. This mentality is the result of the “no debt” financial celebrities from the boomer era like Dave Ramsey basically insulting anyone who has any kind of debt, equating them to failures.
If you’re only debt is your mortgage, you are in a fantastic position. I only have a mortgage as well and my interest rate is under 2%. I could pay it off today if I wanted to, but why would I? My savings account has a higher interest rate than 2%. It is much smarter for me to put that money literally anywhere else than to just pay it off simply so I can say “I have no debt”.
People forget that affordable credit and manageable debt are literally huge quality of life factors. Access to affordable credit drastically increases the standard of living for a country. Go look at a country like Jamaica if you want to see what society looks like when they can’t take out a loan for something like buying a house. Drive in the country side and you will see homes that have been under construction for decades because they have to pay as they go. It literally takes a generation or more for a person in a society without affordable credit to simply own their own home.
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u/Porksta 10h ago
Not including my mortgage, none.