Like you avoid that friend who always “forgets” to pay you back.
😬 Let’s Be Honest About Debt
Not all debt is evil.
Some debt can actually help you grow — like borrowing to build a business, invest in real estate, or fund a course that levels up your income.
But bad debt? That’s the sneaky kind.
It’s the “buy-now-pay-forever” trap that keeps people broke and stressed — all while the banks pop champagne.
🧨 What Is Bad Debt?
Bad debt is any borrowing used to:
- Buy things you can’t afford to impress people you don’t even like
- Fund a lifestyle that’s bigger than your income
- Swipe your future for a few seconds of instant gratification
Examples:
- 0% installment for a 6th pair of sneakers
- High-interest credit cards with minimum payment forever vibes
- Payday loans (a.k.a. financial quicksand)
🧠 How Millionaires Think About Debt
Millionaires don’t borrow for lifestyle — they borrow for leverage.
They’ll take out a loan if:
✔️ It brings in more income
✔️ It helps them grow an asset
✔️ It has low interest and high ROI
Otherwise?
They skip it. No drama. No “but I deserve this!” tantrums.
💡 The Math Is Brutal
Let’s say you owe ₱20,000 on a credit card with 3.5% monthly interest.
If you only pay the minimum?
You could end up paying ₱35,000+ total over time — for something that’s probably already outdated or broken.
Meanwhile, the banks?
They’re getting rich off your FOMO.
💥 Escape the Debt Trap: Real Tips
- Track your spending
➤ You can’t fix what you don’t measure. Open that app. Face the horror. - Use the “debt snowball” method
➤ Pay the smallest debt first, then roll that momentum to the next. - Say no (even to yourself)
➤ You don’t need another subscription. You need freedom. - Avoid “buy now, cry later” traps
➤ Sales, promos, and “last chance” deals are not opportunities. They’re distractions.
🧘♂️ Final Thought
Bad debt is like a bad ex:
Easy to get into, hard to get out of, and always costing you more than you expected.
Millionaires don’t let debt control their life.
They use money as a tool, not a trap.
So before you swipe that card, ask yourself:
“Will this move me forward… or just set me back with interest?”
✅ Coming Up Next: Habit #4 – Invest Early, Even If It’s Small
Because compound interest is the closest thing to magic we’ve got.