How to Money · Friday, July 31, 2026
The hosts argue that the advice to 'live life debt-free' is an oversimplification that can hinder financial progress. They explain that not all debt is detrimental and that strategic use of certain debts, like a low-interest mortgage, can be beneficial, especially when balanced against savings and retirement goals. They emphasize the nuance required in debt management.
“And again it comes down to your personal situation, like maybe you're not quite there, but this is a vital importance to you, and you've got all the reasons why then you know what, Like there are pieces of device and things that we're gonna say here in the show that may not apply to one hundred percent of the folks out there, but this is something that we think folks need to be thinking about more often than not. And similarly, let's talk about debt, Joel, because oftentimes folks will hear that they should be living life debt free.”
“The truth is, is actually possible to use debt in a strategic way to catapult your finances forward. That's a recent episode that we'll link to in our show notes. But not all forms of debt we're created to screw you over, and it's important to keep that in mind. But on the other hand, it's also possible to rely on debt too much, right, particularly consumer debt, in order to fund a lifestyle that you can actually afford, buying the things that you don't need and which should be completely avoided.”
“For instance, like, let's say you do have that fifteen year mortgage at two and a half percent. At a two and a half percent rate, Well, it almost feels like a safe haven right now that we're experiencing a period of intense inflation. Let's say you used all your savings to pay off that mortgage, which in and of itself would be like mean you probably had too much money in savings. Well, you might find yourself in an uncomfortable position if let's say you lost your job next week.”