The average person is scared of debt.

They hear the word and instantly flinch, but what if I told you the real danger isn’t debt itself... it’s the type of debt you carry? Some  think debt is something to be avoided, and in some cases that’s correct. 

But let’s get this straight early:
Debt is a tool, and not all tools are made equal.
Imagine trying to floss with a chainsaw.

In my own terms, I classify debt into three categories:

1. Good debt, beneficial debt
   

2. Ok debt, neutral debt
   

3. Bad debt, what are you thinking?
   

Just like everything in life, you start at the bottom and work your way up.
So today’s lesson is about bad debt, the kind that should make you feel uncomfortable.

Don’t panic. I’ve been there.
Just because you made a mistake doesn’t mean you have to stay in it, and like i said before :
If you fail and get back up, you didn’t fail. It’s only a failure if you stay there.
But you already knew that, didn’t you?

Bet.

BAD DEBT/WHAT ARE YOU THINKING?

Let’s get to it. Here’s the short list of debt types that will keep you broke and bitter:

• Credit card debt
  

• Stupid educational choices
  

• Unreasonable car loans
  

• Buy now, pay later
  

• Personal loans, payday loans
  

Some things just speak for themselves.

If you cannot buy it in cash, you cannot afford it.
Financing something doesn’t mean you can afford it. It just means you borrowed it.

The BNPL Trap

“Buy now, pay later” is just a cute way of saying “stay stuck, forever.”

It’s designed to keep you in a loop of debt.
You’re using money you just got to pay for something you already used?

You’re burning money.

That same logic applies to personal loans and payday loans.
If you’re taking out a loan for a vacation or a wedding, you’re literally agreeing to pay off memories for the next 12 to 36 months.

I once used Afterpay for a pair of Yeezys…
Then I ate ramen for three weeks. Don’t be me.

 College Isn’t Always a Scam, But Sometimes It Is

People love to say college is a scam. That’s not the full truth.

College is an investment, but not all investments are smart ones.

Let me ask you something:
Would you invest $100,000 in a company that only returns $35,000 a year?

No?
Then why take on six figures of debt for a degree you could teach yourself?

It’s not that art degrees or soft sciences are useless. But if you’re going to drop serious money and time, you better know the return.

Car Loans That Wreck Your Life

Let’s talk about leases. Leasing a car is burning money with nothing to show for it.
Once you stop paying, the car is gone. You own nothing.

You are pouring money into a lifestyle you cannot afford.

And if you just took out a $50,000 loan on a Honda Pilot, I need you to step outside and pattern up.

A brand-new car loses a huge chunk of value the moment you drive it off the lot.
So you signed five years of your life away… for something worth less by day two?

Some car loans are okay.
But don’t lie to yourself, they’re rarely good.

 The Credit Card Catastrophe

This one deserves its own section.

If you are in credit card debt, it means one thing:
You spent money you didn’t have.

Now you’re locked into minimum payments, which is basically interest-only.
You’re not paying the principal. You’re just feeding the beast.

Let me be crystal clear:

If you have more than $3,000 in credit card debt, or
If you can’t pay off your balance in the next three months,
Cut the cards. Consolidate. Pay it off. Rebuild your credit.

Credit cards should be used for things you’re already planning to pay for, not what you “hope” to afford later.

Pay with your debit. Use the credit to build your score.
That’s the real formula.

If it isn’t an asset, and you can’t afford it right now, then you can’t afford it.

Stop using borrowed money to live a life you’re not built for yet.

So Why Should You Care?

Because debt is everywhere.

It’s baked into the system, and it isn’t going anywhere.
But not all debt is made equal.

You can go into debt for the right reasons:

• A home
  

• An education
  

• A business
  

• A smart vehicle purchase
  

But people also go into debt for the dumbest reasons
And stay there for decades.

That’s why I’m here.
To help you spot the difference before it’s too late.

Stay locked.
In Part 2, we’ll break down OK debt—the neutral zone between smart and stupid, and how to recognize which side of the line you’re on.

Until then,