THE NORMALIZATION OF DEBT :
How It Happened and Why It ’ s Keeping You Broke
By George Kamel
Here are some not-so-fun facts for you to noodle on : Almost 8 in 10 Americans live paycheck to paycheck . 1 And according to a study by Ramsey Solutions , just over half of Americans have had difficulty paying their bills in the past three months , and 1 in 3 have no savings to speak of .
Now , I don ’ t know about you , but all of this gets me thinking : If we live in the most advanced society in history , why does it seem like we have less time and less money than ever before ? Well , I have a theory about what ’ s causing this mess . And spoiler alert : The financial advice you ’ ve trusted your whole life is the main culprit .
You see , a lot of us weren ’ t really taught financial literacy in school or at home . Our main teacher was cultural messaging mixed with a whole lot of monkey see , monkey do . And what did we learn from our parents and ads from credit card companies ? That we need other people ’ s money to achieve what we want in life .
So , when it came time for college , we took on boatloads of student loans as an “ investment ” in the future — never mind the coming decades of debt and stress . Then we were told a good credit score was crucial for financial success as an adult , so we opened a credit card or two . . . or 10 . Pretty soon , we “ needed ” nicer wheels and tacked on a car loan to the tab . And at Thanksgiving , Uncle Terry wouldn ’ t let up about how renting is “ throwing away ” money , so we decided to get a mortgage for Christmas . Why not ?
This is how debt becomes normal in our lives and eventually begins to rob us of financial margin and ultimately freedom . And to make matters worse , the financial systems we trusted benefit from our money struggles — meaning they ’ re more than happy to keep us dependent on debt and asking for more .
Take the credit score , for example . Most of us have been led to believe that a good credit score is a sign you ’ re doing well financially . But in reality , a high credit score just means you ’ re crushing it with debt management , not money management . Think about this :
• Why do we want a credit score ? To go into debt .
• Why do we want to go into debt ? For a higher credit score .
• Why do we want a higher credit score ? To have more access to debt .
• Why do we want more access to debt ? For a higher credit score .
The only way to achieve and maintain a high credit score is to go into debt , stay in debt , and continually pay your debt accounts “ perfectly ,” without adding too much debt or paying too much off too soon .
Are you getting the theme here ? It ’ s all about debt . The credit score is just an ingenious way for lenders to profit by luring you deeper into debt while convincing you you ’ re doing great with money . In fact , according to a FinHealth Spend Report , in 2020 alone , credit card companies made $ 106 billion off interest . Starting to make sense why they want you hooked on your plastic and obsessed with your credit score ?
So , if what we ’ ve been taught about money is a load of — pardon my French — bologna , then what should we be doing with money ? Well , after falling for all the traps , I finally figured out that financial success is about what you have in the bank , not what you owe to the bank . And that when you ’ re ready to take control of your money and get rid of debt for good , you ’ ll find margin , peace and joy . I know paying off debt can feel impossible , but data shows that most people can do it in under two years using the proven method I personally used to get out of debt — the debt snowball .
Hear me say this : You ’ ll never win with money if you hang on to your debt . So , do you want to keep letting debt rob you of freedom and wealth ? Or will you do the hard work to take control of the money that ’ s rightfully yours ? If you ’ re still on the fence , here ’ s one last question : What could you do if you didn ’ t have any debt payments ? Answer : Anything you want !
George Kamel is a Ramsey Personality and personal finance expert . Following Ramsey ’ s proven money plan , George went from negative net worth to a millionaire in under 10 years . Since 2013 , he has served on the Ramsey team , speaking across the country , hosting top-ranked Ramsey Network podcasts , like The Fine Print and Borrowed Future , and frequently co-hosting The Ramsey Show . His goal is to help people spend less , save more , and avoid money traps so they can live a life with more margin , options and freedom . Follow George on Twitter , Instagram , Facebook and YouTube , or online at georgekamel . com . www . kidslifemagazine . com
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