Why is it important to pay off debt? Here 10 benefits of paying off debt.
When I started out on my journey to a debt-free life, I realised that I needed a “why list.” This list saved me on several occasions; it kept me focused on future possibilities rather than on past failures.
It served as my point of reference for all your actions and decisions. A quick glance at my list stopped me buying too many shoes, taking overpriced holidays, and just generally sabotaging myself. It was the angelic voice on my shoulder.
As you may already know, debt is a ball and chain around the ankle. It can drain your spirit, keep you dependent on a toxic job or partner, and stop you living the life of your dreams. That is why it is important to know the reasons why you are doing something before you do it.
I tell anyone who wants to get out of debt to write their own “why list.” Because knowing the reason for things determines how you respond to them. Your list will get you off the fence and inspire you to take action.
There are many different reasons why you may want to get out of debt. To inspire you, here are just 10 reasons you need to get out of debt starting today!
10 Benefits of Paying Off Debt
1) No debt = complete financial freedom
When I cleared my debts, I could finally focus on putting my money to work for me. For the first time in years, I could invest my hard-earned salary wisely.
I didn’t know anything about money at first. In fact, you could say my financial literacy was pretty much non-existent.
But I gradually picked up everything I needed to know, and you can too.
2) You’ll be able to breathe again
Debt makes you miserable. I remember feeling sick every time a bill or credit card statement landed on the doormat.
Once I cleared my debt, the sight of the postman no longer filled me with dread.
3) You’ll be unbelievably proud of yourself
Hard work and self-discipline are underrated. We live in a society where everyone wants everything, and they want it right now.
It’s a real shame, because achieving a big goal makes you feel amazing.
Clearing my debt will always be one of my greatest achievements, and I’m happy to let other people know how far I’ve come.
I don’t believe money has to be a taboo subject. If it’s OK to talk about graduating or losing weight, why not take pride in getting out of debt?
4) Your standard of living will shoot up
Trust me, being able to afford a nicer home, a more reliable car, and a few treats on the side is a wonderful feeling.
Not only that, but you’ll be secure in the knowledge that you’re meeting your long-term financial goals at the same time.
5) Your relationships will improve
As we all know, a lot of couples fight about money. If debt has become a sore point in your relationship, imagine how much better things will become when you pay it off.
You won’t have to argue about credit card bills or overspending.
Even better, working towards joint financial goals will strengthen your relationship. I still bicker with my partner sometimes, but at least it’s never about money.
6) Your credit score will empower rather than embarrass you
Unless you can afford to pay for big ticket items in cash, you’ll need a respectable credit score to buy a house, get a business loan, or secure financing on a car.
Note that some employers also look at credit ratings, and letting agents also run checks as part of their screening process.
There’s no getting around it. Your number matters.
When deciding whether to lend you money, banks and other institutions will look at your credit history.
Clearing bad debt (e.g. credit cards) will improve your score, making life a lot easier.
7) If you want a new career, a debt-free life is the best possible start
Are you stuck in a miserable job or career because you need it to pay the bills?
Clearing your debt gives you the freedom to pick a job you like, rather than a job you need.
If you want to retrain or go back to university, getting out of debt will help fund your education.
8) You’ll be able to invest in your future
If you want to grow your wealth and enjoy a comfortable retirement, you need to understand how to grow your money with compound interest.
The first step is to free up money to invest, and you can only do this by getting out of debt.
You can then explore investment options such as shares, properties, pensions, and high-interest savings accounts.
If all this sounds dull, don’t worry. Once you’ve read a few books and articles about investing, you’ll understand why it will change your life.
In short, getting out of debt enables you to reach your financial goals, such as buying property or saving for a wedding.
9) You’ll set a great example for others
You might start inspiring those around you to change their ways.
If you have children, getting out of debt lets you model excellent financial habits. Using age-appropriate language, explain how you are improving your situation.
They will grow up knowing the difference between good and bad debt, how to keep any impulses to overspend in check, and how to stick to a budget.
As a bonus, they won’t ask you to bail them out as adults!
10) You’ll get your confidence back
I hid my debts from everyone, even my closest friends. Why? Because I was embarrassed.
On the surface, I was a confident woman with a great career. In reality, I hated my job and was on the verge of a breakdown as my debt spiralled out of control.
My debt was a dirty secret. Clearing it boosted my self-respect.
Clearing my debts has transformed my life in every way imaginable. In fact, it inspired me to start helping other women do the same. If I can do this so can you!
Is getting out of debt easy? No. Is it worth it? Absolutely.
It’s time to believe in yourself. With the right attitude and a solid plan in place, you can do it. Every woman deserves financial freedom and independence. The best time to start is today.
Knowing the benefits of paying off debt is one thing, but actually figuring out how to do it is another.
If you are READY to get out of debt and looking for an actual step-by-step plan, my eBook: How to Get Out of Debt and Stay Out Once and For All is the best place to start!
In this guide, I’ll show you EXACTLY how I paid off over £32K of debt in just two years and how to stay out of debt forever.
You will learn how to get out of debt fast even when you are living from paycheck to paycheck on your own – starting now!
Always remember that the most difficult part of getting out of debt is getting started!
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