Interest Money Pit

Debt is bad, but the interest that compounds on top of that is a literal money pit! Climb out of the pit and get some fresh air.



First, you've got to renew your mind and teach yourself to view your life differently. Sometimes this takes a clear realization of how much money is rushing out of your bank account in the form of interest and how easily you can dry up that river of wasted money by choosing to live debt free.

Start with this drill:

View the statements for your mortgage, auto, credit card, or other interest incurring loans and the amount of money you are spending on interest each month (as well as other associated costs).

Think about, study, and realize just what it is costing you to finance and maintain the items you obtained with such loans. It's important to learn the art of waiting and living beneath your means.

Buying a house for $100,000 is not such a good deal if you end up paying 240,000 for it! And, after all is said and done, how much are you really paying for those sale items or new furniture you bought on credit?

Finance payments supply you with an ongoing, monthly burden. The stress intensifies if you are unable to make a payment. Before you know it, the enormous interest compounds at an alarming rate and you're really in trouble or under constant pressure and anxiety; wondering when, if ever, you will be able to get rid of the liability! Even if you can comfortably afford it, that money could be put to much better use!

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