Now is a very good time to be Debt Free. Why?

 Of course it is also true that ANYTIME is a good time to be debt free but particularly now.

Why?

Because the Fed is going to have to raise interest rates and this will inevitably cause the stock market to not to do as well but it also should have the effect of ending inflation to a greater or lesser degree too. The primary tool the Fed has to lower inflation is raising interest rates.

So, what happens when interest rates raise?

The first thing that happens is that loans become much more expensive in the short and long runs. It will be much harder to get a reasonable rate on loans. 

So, the first thing that will happen is people will begin to think twice about buying a home with a mortgage because the interest rates will be too high for them to manage. And anyone with a flexible interest rate will very soon see they made a very big mistake.

From my point of view a flexible interest rate is almost always suicide financially (at some point) but you might not know when that point will occur. And unknowns regarding investments are the biggest problem that investors usually face on a daily basis in their lives.

So, the complete strategy that investors have used while interest rates were low in order to stimulate the economy will be lost because of raising interest rates. So, those who ONLY know how to invest during low interest rates likely could lose a lot of their investments unless they learn how to navigate during higher interest rates because literally everything changes regarding investments as interest rates are raised nationwide.

The lower half of the population will actually be harmed the most either directly or indirectly because as interest rates raise (even though it's true that inflation should theoretically at least come under control) other things happen too like money being donated likely will begin to dry up and non-profits will be having trouble raising money because there won't be the high dividends or high stock prices when interest rates go up either.

When money to borrow becomes more expensive through higher interest rates this makes investments more costly and expensive too so people will invest in entirely different ways during higher interest rates regarding loans from banks.

And poorer people who depend upon non-profits the most will likely also be hurt the most. However, raising interest rates will likely help the average person's food bills stay lower which is why raising interest rates is important to the average person now nationwide.