People out there think that by only using cash, shunning credit cards in the process, they will put themselves in a better position to stay out of debt and control their spending. They think that simply because cash is a finite resource, they can only spend what they have available and no more. They also believe that the only form of debt is overextending themselves with credit and credit cards. Unfortunately for all of these people, that line of reasoning cannot be further from the truth.
There are generally two schools of thought when it comes to paying down debt:
But neither of these methods addresses the true issue on their own, which is minimizing interest payments in order to pay down the principal balances more quickly, paying it off in a shorter period.
That’s why I prefer to combine the two theories into one comprehensive method that reduces the debt while also minimizing the amount of interest that will be added along the way.
Credit is always a hot-button issue. There are many pundits who fault credit issuers for charging late fees and high interest rates while also blaming them for consumers getting into debt. These people believe that credit is evil, the bane of society, the cause of all that is wrong with the county, etc. While I am being a bit sarcastic in that last statement, it’s not far from the truth. It’s true that there are some people who have a real addiction to shopping, but that’s a totally different animal. I strongly believe that the credit issuers are not totally at fault, and that every person who has ever found themselves in debt needs to take a good long look at the person in the mirror and claim responsibility for where they are.