I’ve partnered with LightStream, a division of SunTrust Bank, to help raise awareness of debt consolidation financing as a fast, simple and smart solution to help responsible consumers manage their purposeful debt. I received compensation for my participation in this campaign. This post reflects my personal opinion and should be treated as such.
There is no question that debt has a bad stigma.
Everywhere you turn there is a ton of focus on getting out of debt and it is understandable, as the total U.S. consumer debt is roughly over $13 trillion.
Granted some of those consumers got into their debt because they made some bad financial decisions, but what about those who got into debt with a purpose?
If you listened to the podcast episode where I shared the story of how we were a one car family for 7 years you also know that we got back into debt when buying a second car. I share candidly the reason we went this route even when actively saving for the next car purchase. Long story short I didn’t account for the car maintenance of our older car which pretty much drained the savings for the next car purchase.
Would I have loved to pay for that car in cash? Absolutely, but it wasn’t feasible and I was ok with that.
Bank loans weren’t created to get us into financial trouble; they were created so we can get something now while paying for it as we go.
If you have good credit, make a good salary where you are not living paycheck to paycheck, and you are saving why should you feel guilty in needing to borrow money? What if you are in a situation where…
… you don’t have the cash to adopt the child you’d love to add to your family?
…or maybe you and your spouse have been having difficulty conceiving and don’t have all the cash for fertility treatments?
…or maybe you are about to go through a divorce and you are seeing what it is going to cost and you almost fell out of your chair because you don’t have the cash in the bank?
When you borrow with a meaningful purpose, there is no room nor time for guilt. The feeling of guilt is self-imposed which will impede you, so I say kick that out of your space and don’t let it back in.
There are 3 reasons why giving debt a purpose is how you win with your money:
Reason #1: Debt is not the enemy.
Our only enemy when it comes to debt exists between our two ears and we can always work hard to control those thoughts.
As a person working in the personal finance space I could have easily let the getting back into debt consume me and make me feel like I am a fraud, but I didn’t because of the next two reasons.
Reason #2: Having a purpose for that borrowed money gives you clarity on where you are going.
Debt is the result of borrowing money and paying a fee to use it while paying it back. Borrowing money is a tool that can get us to what we want when we do it responsibly (and frankly at times it is necessary).
My family’s purpose in getting that car loan was because we reached a point where we needed that second car or someone (that would be me) would be spending the majority of her time driving people to and from work, etc. and it was not feasible.
Reason #3: Having a clearly defined strategy to pay the money back gives you a sense of control.
When you take on purposeful debt you will find that it is temporary especially if you know exactly how you are going to pay it back and how long it will take.
Before taking on that new car loan we knew how much extra money we had to add to the payments and how long it would take to pay it off. As of the writing this blog post we are just 2 months shy getting that debt balance down to zero!
I’m curious.
Are you finding yourself in the situation where you are needing to borrow money?
Are you wondering what your options are as credit cards would be an expensive way of borrowing the money you need?
I love keeping things simple like you do and fortunately LightStream, a division of SunTrust Bank does too! They offer consumer loans for people with good credit. Here’s what I love about them:
LightStream is an online consumer lender that offers low rates, no fees and a simple transparent experience for people with good credit. LightStream makes Lending Uncomplicated®. A debt consolidation loan from LightStream has fixed, low interest rates that enable consumers to pay off debt in a straightforward, money saving way. They have even given me a special link to share, so my readers can receive a discounted rate on your loan, if you’re approved.
- They are widely recognized (credibility is very important to me)
- They are transparent with their rates, and there are no fees for their loans.
- And…get this, for every loan they fund they plant a tree with their philanthropy partner American Forests. How cool is that?
Plus, because you are here you get a perk in getting a discount on your rate (if you are approved of course). All you have to do is use this link by clicking here.
Not too familiar with debt consolidation? Be sure to tune into episode HDM 195 (available now!)that airs next week. In this episode, I will share with you everything you need to know to make a smart decision for you in regards to debt consolidation!
Abrazos + Much Love,
Jen
