No debt is the best debt, but debt is unavoidable for nearly everyone, so #nodebt is not really an option; it’s just something families have to live with. But just because debt is inevitable, that doesn’t mean that it doesn’t need special attention. Debt has to be controlled. It has to be monitored. Above all, debt has to be managed because if it is not, debt grows to an unmanageable size. If a family doesn’t carefully monitor and control the amount of debt they have, monthly debt payments consume a large share of monthly income. If this happens, the family will experience a diminished quality of life. But a decrease in monthly lifestyle is not the only negative result of carrying a high debt load. High debt payments can and do reduce the family’s ability to save for retirement. High debt loads and high interest charges consume money that could otherwise be used to save for retirement. The result: by the time retirement rolls around, the family doesn’t have sufficient funds to live comfortably and then hard sacrifices have to be made.
So it’s very important to monitor family debt. When a family makes a habit of monitoring their debt, they can control their level of debt and keep debt loads and interest costs low, preventing them from becoming unmanageable.