According to MSN Money, about 43% of American families spend more than they earn each year. That's nearly every 1 in 2 people that shell out more than they make. The average households carry some $8,000 in credit card debt. Yikes, just the thought of that makes me incredibly nervous!

What exactly is it that is so necessary in our lives that we actually carry the burden of debt? No sugar coating allowed, debt is a burden. I don't know about you but I am all too familiar with the burden of debt. We grew up in less than desirable circumstances where the month seemed to stretch longer than the money. Debt never created better circumstances for my family, just lots of difficult times. Maybe that's why I am so adamant about living below our income, saving money, and finding ways to generate income to pay down debt.

To me, almost all debt is dumb. Don't get me wrong... for most of us debt is necessary- like in purchasing a home, a car, to send kids to college, etc. But it is really a dumb thing. I mean, we pay money to borrow someone else's money to get what we often do not really need. We could simply save up for what we want in a lot of cases- a lofty thought, I know. But in no debt scenario does the math work out to be a profitable situation. If I borrow $1, I owe you as much as $2 or $3 or $4. That's dumb! I'd rather save my quarters until I have enough to make my own dollar! Why then do we have debt? I mean, it's now become such an intricate part of our lives.

Personally, our family is on a mission to be completely debt-free. We currently do not have any outstanding debt except for our home. The goal is to pay that off by living below our income and by generating extra income. It's a desire that never goes far from my mind because I feel as though we can so many more things when we stop paying interest.

How about you? What are your thoughts on the necessity of debt?