Over the past few years, I have become more and more convinced that the single biggest challenge most people face when it comes to achieving financial independence is the interest expense they pay on credit card debt, student loan debt, home mortgages, consumer debt, and other liabilities. Think about it like this. If all you have is $25,000 in credit card debt, the problem isn't the debt itself so much as it is the $7,500 per year in interest expense you would owe the bank if you had a 30% … [Read more...]

The AP had great news about credit card debt today: Consumer borrowing increased in September for the first time since January even though the category that includes credit cards dropped for a record 25th straight month. The rise in credit came from the category that includes student loans. That means that consumer debt rose a bit because more people were going back to college but credit card debt has declined for 25 straight months. That means for more than two years, consumers have been … [Read more...]

Although credit card debt is a relatively new phenomenon, it is the spiritual descendant of consumer debt, which has been around with us forever. Consider the words of the bestselling Napoleon Hill in his book, The Law of Success, which was originally published in 1928 as part of an eight-part series: It is a terrible thing even to think of going through life like a prisoner in chains, bound down and owned by somebody else on account of debts.  The accumulation of debts is a habit.  It … [Read more...]