Debt is stupid. It robs you of your options. – Chris Locurto

The facts are staggering. Debt is a problem and it is getting worse.

• Average student debt increases while wages decrease.
• 40 Million Americans hold student debt.
  • 7 Million of those have defaulted on these loans.
• The average American carries nearly 4 credit cards (down from 5.5 in 2008).
• Total student loans in the U.S. have exceeded $1.1 trillion, and revolving consumer debt is $875 billion.

To be financially free and truly wealthy, you have to get out of debt. Yet, so many people are strangled by it. Not only is it hard to pay off, but it also makes it even more challenging to build your wealth in the future.

Here are some of the impacts of having debt:

• Stress: not only is there this feeling of a black cloud over you, but it impacts your family, health and relationships as well. Money issues are the #1 cause of divorce.
• Bad credit score: by defaulting on a loan and/or carrying a lot of consumer debt, you’re hurting your credit. This impacts your future opportunities, including: renting, getting a mortgage, car insurance premiums, starting a business or getting a job, and much more.
• It is harder to get a job: 60% of employers run credit checks before hiring, and some colleges hold transcripts of those that are behind on payments.
• You pay more in the future: the worse your credit, the more interest you’ll pay in the future when getting other loans. It is a self-fulfilling prophecy that you want to get out of as quickly as you can.
• Opportunity cost: instead of putting your hard-earned money to good use (investing, fun, freedom), you have to use it to pay off debts and interest.

As a result, hear this loud and clear:

Getting out of debt has to be a paramount financial priority in your life.

The good news is that you can overcome massive debt.  [Read more…]