Don’t Fear Debt, Fear Regret: Being Debt-Free Isn’t Always the Answer

Executive Summary

Many people treat debt as the enemy, racing to pay off everything as quickly as possible. But eliminating debt doesn’t always mean achieving freedom. In fact, some debt-free individuals are financially stuck because they lack liquidity, flexibility, or the ability to respond to life’s opportunities. 

Real financial freedom isn’t about having a zero balance—it’s about having the flexibility to respond to challenges and opportunities.

Want to watch an in-depth exploration of this topic? Check out this video on my YouTube channel, @savvysteward: Don’t Fear Debt, Fear Regret: Being Debt-Free Isn’t Always the Answer

Don’t Fear Debt, Fear Regret: Being Debt-Free Isn’t Always the Answer

For many people, eliminating debt feels like the ultimate financial goal. It’s framed as a mark of responsibility—fewer payments, fewer problems, and more peace of mind. But debt-free doesn’t always mean free to act.

In fact, some individuals with zero debt find themselves more limited than those still carrying a balance. 

Why? 

Because in their pursuit of clean ledgers, they’ve sacrificed liquidity and flexibility—the very tools that allow you to respond to life’s most meaningful opportunities.

Why Being Debt-Free Doesn’t Guarantee Financial Freedom

It’s time to draw a distinction: being debt-free is not the same as being financially free. You can pay down everything you owe and still lack the ability to act when it counts.

Debt elimination is a noble goal—especially for those buried in high-interest consumer debt. But for people with stable income, controlled spending, and low-interest obligations, racing to zero can have unintended consequences.

They might pay off their mortgage and then find themselves unable to help a family member in need. Or they pour money into a business and can’t pivot when new opportunities arise. A clean balance sheet looks great—but if you’re stuck, it’s not serving you.

When Is Debt an Act of Stewardship?

In some cases, carrying debt can be a wise decision, rooted in stewardship.

Let’s say you have a mortgage at a 3% fixed interest rate. What if you kept your cash working rather than rushing to pay it off?

That money could be:

• Invested in assets that build long-term wealth
• Used to support charitable causes or projects you care about
• Set aside to create margin for unexpected or meaningful opportunities

In that context, maintaining debt isn’t a burden—it’s a strategic choice. Stewardship isn’t about eliminating every liability. It’s about asking: What’s the best use of the resources I’ve been given?

Can You Be Too Focused on Paying Everything Off?

Some people work so hard to get debt-free, they unintentionally put life on hold. They delay generosity. Skip rest. Miss time with family.

You might hear this mantra: “No debt equals freedom.” But I’ve never heard someone say, “I’m so glad I paid off my house early—even though I missed those years with my kids.”

I’ve heard plenty of people say the opposite.

The question isn’t, “How fast can I pay everything off?” 

It’s, “Is this plan helping me live the life I’m meant to live?”

What Does Purposeful Debt Look Like in Real Life?

Imagine you’re holding a low-interest business loan, and you have strong cash flow and healthy reserves. Sure, you could pay it off, but that might wipe out your liquidity.

Now consider this: what if keeping that margin allowed you to support something important—like helping your child launch a nonprofit, investing in a mission you believe in, or simply being available when someone close to you needs help? Being intentional with your money doesn’t always mean avoiding debt—it means knowing when to keep it. If the numbers work and it gives you the flexibility to support important things, you may want to carry the debt.  

The goal isn’t a zero balance sheet. It’s freedom, flexibility, and the ability to say yes when it counts.

Contact Information

Keith Demetriades, CFP®, CKA®, helps individuals, families, and organizations integrate faith-based principles into their financial planning. Oikonomia is a foundational concept in his practice, reflecting his commitment to stewardship, purpose, and making your life count.

For more information, contact Keith at (806) 223-1105 or visit https://www.kingsview.com/advisor/keith-demetriades/.

Disclaimer: The information provided in this blog is for educational purposes only and should not be considered financial advice. Please consult a qualified financial advisor to discuss your specific situation and needs. Past performance does not indicate future results, and all investments carry risks, including potential loss of principal. Any financial product or strategy references are purely illustrative and should not be construed as endorsements or recommendations.