September 18

How To Manage Debt For A Financially “Peaceful” Life


This is an unpopular opinion, but it’s dangerous to put off paying your debt, even if the interest rate is 0% or your payments are temporarily deferred.

It’s dangerous financially.

And it’s dangerous emotionally.

I’ve been reading an FB thread with business owners. And they were talking about how they deal with debt – how they put off paying it down – and how they use the borrowed money to ‘invest’ (mainly because they are behind on retirement).

I get really uncomfortable hearing this type of financial advice because I’ve not only been down that rabbit hole myself with great detriment to my health.

But I’ve also seen others go down that hole. And they’ve aged in so many ways so quickly. Grey hair, frown lines, Ulcers, Heart disease, Diabetes, Depression (this was my particular problem brought about by financial stress) and Gastrointestinal issues.

I’ve seen a lot of people playing what feels like ‘hop scotch’ with their money. They actually don’t get too far ahead with their wealth-building … plus, they are still stressed (and confused) about their finances.

Getting a loan or using your credit cards does feel like a hand up. And it seems at the time to be a much appreciated hand up. Especially as a business owner because we all know that the entrepreneurial lifestyle can feel lonely and challenging. 

But staying in debt and playing these interest rate games do not create financial peace & plenty.

People argue with me all the time about this.

‘But Callum, if your bank offered you $10K with 0% interest forever [unheard of!]. With small payment options so you could take the money and invest any way you wanted. You would you take it… wouldn’t you?’

Nope. Not now… not now that I have a financially stress free life.

My clients and I won’t – unless our emergency funds can’t cover our needs and we are truly in between a rock and a hard place.


I’m not willing to put myself in that emotionally draining position again. And I certainly don’t want to put my family through that either.

Nor do I want to put them in a position where we couldn’t make the payments if something were to happen!

I don’t care if cash flow is insane right now because there are no guarantees in life!!!

Now that doesn’t stop me from using credit cards and earning cashback. I just pay the total amount each month in full.

One of the reasons my wife and I chose to live in Thailand was that we could buy a house outright. No mortgage.

Obviously, sunshine and quality of life were high up the list.

But you can’t imagine how freeing having no mortgage is.

There’s a ton of peace and freedom in knowing that if your business tanks or another breadwinner in your family loses a job or you have to take time off.  That you have zero payments to worry about. 

Couple that with an emergency fund, well-organised finances, and a more abundant mindset, and you are financially free.

Everyone talks about the ‘math’, but the problem is humans aren’t logical. We are emotional.

Everyone’s doing the math to convince themselves that there’s ‘good’ debt and ‘bad’ debt, but there are no guarantees in life. The only certainty is that if a bank loans you money, you have to pay them back.

The only magic wand I’ve seen lately is that the American government is forgiving student loans to vets who are permanently disabled.

All us other muggles are going to have to pay up sooner or later.

But, for the fun of it, let’s do some math, shall we?

Let’s talk about student loans.

A lot of people have noticed that their automatic payments have suddenly stopped.  And, a lot of people have said, ‘Yeah! They aren’t taking the money. I won’t pay them!’

Well, you’ve just lost about $8K with that kind of thinking.

Here’s the proof.

The average student loan is about $39K.

The average interest rate on a student loan debt is 5.8%.

The average monthly payment is close to $400.

A lot of people have stopped their payments since March 2020, at the start of the shutdown.

But, think about it.  It’s now almost 18 months later, and they’ve made NO progress on paying off their loans.

They are still close to $40K in debt, a year and a half later.

Now, if you’d have kept paying your loans, ALL the money would have gone towards the principal, knocking off about $8500. 

So, in 18 months, you would have gone from almost $40K in debt to closer to $31,500K.

Just remember, you can do math all day, but you live and experience life in an emotional state.  Just because the math is sexy doesn’t mean you are going to follow its logic.

Realising that debt is a battle you’re not going to win, as long as you’re in it. Understanding this will free you from feeling like money controls you. And I promise you will sleep so much better at night.

Also, when you are out of debt, all of your money can go towards growing your wealth, instead of having to pay someone back.

And when you can focus on putting the bulk of your money towards wealth building, you’ll move forward at lightning speed.

For example, a client of mine took out a 0% interest credit card for 18 months and started charging it up to her limit of $12K.  But after having Wealth-4-All financial check, she realised she needed that debt monkey off her back and paid the card off in full before her 18 months were up.

It wasn’t mathematically logical that she did this, but she felt emotionally FREE once she did.

She then moved forward and frequently added funds to her Wealth-4-All PAMM account and realised her dream of early retirement.

She reduced her financial risk by paying off her debt and increased her wealth but tapping into the power of compound interest.

I hope this post helps you see that even if your cash flow is fantastic, having that debt hanging around is not doing you any favours.  I’ve literally had clients pay off all of their debt right after a meeting with me because they realised they could, so they did it.

That allowed us to move on to the other steps to creating true wealth:

  • Figuring out how much you need to retire.
  • Putting together a retirement plan.
  • Setting aside for children’s education.
  • Exploring other wealth-building opportunities (such as real estate).
  • Making sure finances are well organised and set up for proactivity vs reactivity.
  • And making massive money mindset upgrades.

If you’re interested in what this is all about – this journey to creating financial peace & plenty – and learning how to turn your income into true wealth, just reach out over messenger.  We’ll have a chat about where you are and what you’re looking to achieve.

The rest will be history!

What you should do right now!

The W4A PAMM account is all about growing your funds quicker, enabling you to invest in other areas or provide you with a passive and steady income.

To serve my clients equally well, I have set a limit of 100 high earning accounts. Once those are complete, the doors will close forever.

Don’t let this opportunity pass you by, click here now and apply to become one of only 100. Your future self will thank you!

Callum McLean

I believe that everyone has the right to be financially free. I founded "Wealth 4 All", an organization that guides people from all walks of life to achieve that goal, either by teaching them how to trade or through passive investments. Connect with me to get started today.

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