Preet Banerjee TEDxUTSC - Debt is a Four-Letter Word

TED & TEDx

Disclaimer: I love TED talks - almost every talk inspires me. If you are unfamiliar with TED, TED is an annual conference where industry leading speakers on any given subject give "talks". Those talks are recorded and then posted on the TED website. TED describes themselves with the following: "Ideas worth spreading" & "Riveting talks by remarkable people, free to the world". Now TEDx is a little different in that they are "fully planned and coordinated independently, on a community-by-community basis" - basically a TED in your local market. I had the privelige of attending the first TEDxRegina, it was very well done, here is the video gallery. If you ever get the chance to attend a local TEDx conference, please do it, you will not regret it!

I recently came across this talk by Preet Banerjee at the TEDxUTSC on the true cost of debt. I found it very challenging - thought I would share!

Summary Points

"Debt used to be a four-letter word, now its just a word."

"We need to start hating debt again, debt with respect to buying depreciating assets"

"People should be looking at the evils of paying interest."

"A $35k car loan will cost you $43k over 7 years."

"A lot of people carry a balance in perpetuity on their credit card, carrying a $5000 credit card balance, paying interest only from age 18-65 will cost you $70k in interest."

"For perspective, ask yourself, what is the total cost you will pay in interest, over your lifetime on stuff that isn't worth anything anymore?"

"Think of borrowing money today as negotiating a pay cut with your future self."