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I was recently in a client consult, and a question they asked was:

“My accountant told me that it’s okay to carry smart debt, is this true?”

I thought that this was such a great question and so I want to dive into it a little bit deeper. Now, this particular client who asked me this question, of course, my next question to them was, “Well, how much smart debt are you carrying?” Their answer was about 1.1 million. I don’t know about you but carrying over a million dollars in debt doesn’t sound very smart to me.

This is something I see and hear a little too often where a financial expert, such as an accountant, is actually giving you bad information which really is not good for you. But let’s dive into this a little bit deeper. It’s super, super easy to carry debt, because, well, it’s easier to spend the bank’s money than it is to accumulate our own money and use that to spend instead.

It’s much smarter to accumulate your own resources, have a line of credit that’s your own money, and not have to rely on debt at all. Debt is actually a trillion dollar industry. Of course, there’s a whole lot of people who are telling you it’s super smart to carry debt, but it just isn’t true. The smartest thing to do is to actually be debt free and to set yourself up to have your own resources so that you can become your own bank. Think of how much money right now that you’re putting out to service the debt in your life, the credit cards, the bank loans. Imagine if you had all that money back. Think of how much money that you spend every month on interest or every year on interest. Imagine if you had all that money back.

There is no such thing as smart debt. No debt is the smartest debt.

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Jennifer Dawn is the co-founder of Profit Plus Advisors, a Profit First Certified Coach, and a Provendus Growth Academy Coach. She has built two multi-million dollar businesses, is a published author, and accomplished speaker.