Sitting in traffic at a red light I noticed the vanity plate on the car in front of me, “Zero Debt.” Did they mean that the car was paid for? Or did they mean that they had no credit card debt, no personal loans, no car loan, and no mortgage?
Most people in the United States get the maximum loan that they can for their house and for their cars as well. Sure they look good, but they don’t really own anything. According to a CareerBuilder survey (Fall 2010) over 75% of people in the US live paycheck to paycheck. With little savings and lots of debt the moment their income is disrupted they are living in panic mode.
Lack of debt is a wonderful thing. It makes you more resilient in a poor economy. An article in today’s newspaper featured an unemployed man that was doing OK because he had no debt prior to being laid off. He’s unemployed but still has his car and his house since they were paid for.
Living a “Zero Debt” lifestyle provides peace of mind, even while living through “The Great Recession.”