Recently, I wrote about the importance of managing your personal lifestyle and personal debt since it can have a big impact on the cash you need to take out of your business.
From time to time, I will write here about personal finance issues and the use of personal debt. It is such an important part of winning financially that I want to share some tips and strategies with you.
Student Loans Are Dangerous
One of the biggest enemies of smart financial management right now is student loans. Students, and parents, are taking on student debt at a mind-boggling rate. Total student loans just passed the $1 trillion mark. And it is climbing fast.
Student debt has surpassed total credit card debt and total auto loans.
But here is the point everyone is missing. The $1 trillion of student debt is owed by about 37 million borrowers. That’s an average of about $27,000 per person.
The average credit card debt per person is in the $5,000 range. And the average auto loan balance is just under $10,000.
Here’s the Deal
My view is that 6 out of every 10 people who take on student loans are harmed financially. Think about that for a minute.
You wouldn't send your child out on a drive across town if you knew there was a 60% chance they would be seriously hurt before they returned.
You wouldn't fly on an airplane if you knew the odds of your plane going down in flames were 60%. You would find an alternative means to get where you are going.
My advice for you is to seriously consider outlawing the use of student loans in your family. More and more private lenders are trying to get parents to take out student loans for their kids or having parents co-sign for their kids. Just say no… please.
Freedom from Student Loans Blog
I will be starting a blog soon devoted to helping you learn why student loans are such a nasty form of debt. Send me an email if you would like me to let you know when that blog is up and running.
I'd like to see you win financially in life.
Freedom from student loans is an important part of your journey toward winning in life. I hope I help in some small way in your success along that path.