What FIRERANT Thinks About Debt
Debt isn’t evil.
But it is expensive.
FIRE treats debt like a tool — not a lifestyle.
Step 1: Separate “Productive” From “Toxic” Debt
Not all debt is equal.
Toxic debt:
Credit cards
Personal loans
High-interest auto loans
Potentially productive debt:
Mortgages at low rates
Education that increases income
Interest rate matters more than balance.
Step 2: Eliminate High-Interest Debt First
Anything above ~6–7% is an emergency.
Why?
Market returns are uncertain
Interest is guaranteed
Paying off high-interest debt is a risk-free return.
Step 3: Stop Adding New Debt (This Is Critical)
You can’t dig out while digging deeper.
Before optimizing:
Freeze cards
Pause upgrades
Break the “monthly payment” mindset
Momentum requires containment.
Step 4: Choose a Simple Payoff Strategy
Pick one and commit:
Avalanche: highest interest first (math-optimal)
Snowball: smallest balance first (behaviorally powerful)
Consistency beats strategy.
Step 5: Redirect the Payment When Debt Is Gone
This is where FIRE accelerates.
Same payment
New destination
Automatic investing
Your lifestyle doesn’t inflate — your freedom does.
Step 6: Reframe Debt Emotionally
Debt is not a failure.
It’s a math problem with an end date.
Clarity removes shame.
Plans create relief.
The FIRERANT Rule
If debt charges interest,
it works against your freedom.
Pay it off.
Then let your money work for you instead.
— Jackson
