Debt = Slavery

But No Debt = Freedom

Rashad and Nirvanna Muhammad were already saddled with student loan debt when they married in 2005. They both earned undergraduate degrees at Bethune-Cookman University in Daytona, Florida. Rashad pursued his master’s using student loans too. Add in car loans and a move to Texas, and the couple was swimming in debt. Raising children meant additional credit card debt. Even though they were both working full-time—Rashad as a principal and Nirvana as a teacher—they owed $250,000. They declared bankruptcy in 2013, but that only lowered the total to $179,000. Their debt was crushing them. 

While not everyone finds themselves that far underwater, millions of Americans struggle with debt. Home mortgages aside, the average American has nearly $20,000 in debt, including credit cards, personal loans, car loans, and student loans. Gen X is the most indebted by far. 

That's not an accident. Debt equals slavery is another one of our America First Economic Principles (read about some of our other principles here and here). We can all learn to live within our means and take the next step towards financial freedom.

There’s Quicksand In Your Wallet

Fixing our debt problem starts with buying less. We've talked about how overconsumption kills our finances (read our article on overconsumption here) and how the elites lure us into buying more than we can afford. Because what happens when we buy more than we can afford? We take out a loan.

When you think of loans, you probably think of home loans. The majority of homeowners have one. And there's nothing wrong with a mortgage if you don't refinance too aggressively or stretch out your term and increase your interest cost. What's dangerous is borrowing money for shorter-term purchases.