Who wouldn’t want to live a debt-free life? Unfortunately, the world we live in isn’t perfect. It’s unavoidable to have credit card debt, quick cash loans, mortgage, auto loans, and other forms of debt designed to sustain our lifestyle – to get the best out of life today. But just because having a debt is inevitable doesn’t mean it’s impossible to get out.
Yes, it’s possible to enjoy a debt-free life, hopefully, sooner than expected. Instead of merely thinking about what would happen if you don’t pay, condition your mind with positive thoughts and think of the good things that would happen if you do pay back.
You’ll have increased savings
Imagine earning your paycheck and not paying for anything but groceries, utility bills, and other pleasurable experiences, like dinner dates and vacations. Isn’t it nice to end the month knowing you harvest everything you have planted?
Having your debt paid off means you’re done with those daunting monthly payments with interest which make up a large chunk of your savings. Additional savings allow you to enjoy the best out of life today and build an emergency and retirement fund for the future.
You’ll retire early, comfortably
There’ll come a time when you get older and lose your capacity to work and earn, and the last thing you want to do by that time is to continue paying your debts. You want to unwind in your sixties and live your golden years in a comfortable state, right?
If you manage to set your debts as early as possible, you can have an adequate amount in your retirement accounts. You can use your savings to travel, sustain your lifestyle, and reach financial independence.
Your financial security will increase
One of the worst things about getting buried in debt is the risk it brings to your life and security. For instance, if you have a massive debt and an emergency situation arises, like hospitalization, job loss, or serious home repair, you have little to zero emergency savings to fall back on.
Getting free from debt means you won’t receive constant calls from collection agencies, lose your home due to foreclosure, have your car repossessed, and be sued for nonpayment. And if you do become unemployed, you’ll have enough security to look for the ideal position rather than grabbing the first job you see just so you can pay off your debt and make ends meet.
You’ll have a better credit score
Carrying a massive amount of debt takes its toll on your credit rating. The closer your loans and credit cards are to the credit limit, the lower your score will be. Poor credit score results in higher interests and even disqualification from taking out certain loans, making it harder to escape from your debt spiral.
When you fully settle your debts, you’ll enjoy a lot of benefits, like better interest rates on any future loans and lower insurance premiums.
You’ll get relief from anxiety
Living while owing money never fails to cause stress and anxiety. The thought of constantly losing money to pay for auto loans and credit card debt in time can be frustrating, especially if your budget is tight and you have to cover both the debt payments and other living expenses. A little stress doesn’t hurt, but chronic stress can be your ticket to serious illnesses.
Getting free from debt lifts a vast weight off your chest. You can sleep more soundly. You’ll get your mental health back on track. You can enjoy the great things in life without guilt. You can devote more energy to your family, your friends, your job, and the activities you love.
Your relationships will improve too
Next to infidelity, problems about money is a leading cause of divorce. Even when both partners work their way together to eliminate debt, the stress and the negative emotions brought by debt like anxiety, depression, anger, and fear can put their marriage on the rocks. Debts can affect your other relationships as well.
Getting rid of debt helps make your relationship better. You’re not in a bad mood most of the time and you can focus creating meaningful conversations and experiences with the people around you.
You’ll be happier than ever
If you’re debt-free, you can fund your dreams. You won’t be just saving up for the necessities – you’ll also be able to have a “fun fund” which you can use to fund your travels, new hobbies, business venture, and more.
Author Bio: Carmina Natividad is a resident writer for QuickCash, an Australian-based business, providing short-term cash loans for your borrowing needs. She is passionate about writing articles regarding personal finance and money hacks.