Tuesday, December 22, 2015

The First Domino Falls: Debt

Our mortgage is now completely paid off.  And we have no other debt.  No car loans.  No HELOC.  No student loans.  No margin debt.  Nothing.  We are 100% debt free now.

Unlike some bloggers, I've never taken an extreme position either way with regard to debt.  I don't think debt is inherently bad and something to be avoided at all costs.  But I also don't think people should load up on debt to binge on consumer items or to play games with low-cost debt versus higher-return investments.

Debt is both a tool and a risk.  That is why most corporations have some moderate level of debt.  But corporations can operate in perpetuity; individuals have a fixed lifespan.  Hence, as people get older, it is natural for debt levels to fall towards zero if things are managed properly.  We just arrived there a little earlier than some others.

The elimination of debt was the first domino to fall.  The next one is on the way very soon...

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