Do you have debt? Whether you have a lot of debt, like credit cards, car and student loans, and a mortgage debt, or just the mortgage, you might be wondering how millionaires handle debt. What makes them different? This post gives you a glimpse of insight into how millionaires handle debt.

Think Different

According to, there are 5.32 million households in the U.S. with assets worth $1 million. Research shows they handle money differently than most. They must, or they wouldn’t be part of that 3% of millionaires.  One thing they think differently about is debt. And you can too – with a little awareness.

Forget Payments

Millionaires pay cash. The other 97% make payments.

Have you ever noticed that when you enter a dealership to buy a car, one of the first things the salesperson wants to know is – what payment can you afford? They never ask – what can you afford? or – how much do you want to spend? That’s because it’s in their best interest to sell you the most expensive car and finance it over the longest period of time. They make money on the car and the loan. Let me explain:

For Example

Say you want to buy a new truck. The pre-owned truck costs $32,500. The only thing you have is your trade-in for a down payment. They give you $3,000. You finance $29,500. But in order to get your payment lower, you finance it for 60 months.

$549.97 – payment

$3,498.20 – total interest paid

$32,998.2 – total amount paid + your car

If you sold your car for $5,000 and paid cash, your actual costs would be $32,500 – $5,000 = $27,500. The difference is $5498.20.


According to, the average person keeps a car for about 6 years. If you did this from age 23 until age 63, you’d own on average 6 or 7 cars. That’s an additional $36,618 added to your net worth over 40 years. If you invested the difference, your net worth grows even more. Add your spouse’s car and a mortgage or two and you get the point.


90% of my clients have no debt. If they do have debt, it’s a mortgage that’s being paid down fast. They understand that payments equal less cash flow equals less financial freedom. Over time, little habits can have big results. If you want to learn to think like a millionaire and grow your net worth faster, check out my newsletter.

Rich Feight, CFP
Rich Feight, CFP

Hi, I'm Rich Feight I'm a fee-only Certified Financial Planner, successful business owner, and self-made millionaire that knows how to beat the system and become wealthy. I have a lot of clients that have done it too. I'm also pretty good at finding that ever-elusive work/life balance so many of us strive for. Lucky for you I have an abundant mindset and give all my knowledge away on my blog. So if you want to know what it takes to become a millionaire, follow me.