getting out of debt
Eliminating bad debt from your life is crucial to getting on the path toward financial freedom. Learn how to create a realistic, manageable and successful plan to wipe out your debt as quickly as possible.
Aren’t you tired of being stressed out over debt? Imagine what you could do with your income each month if you had no payments to make – no car payment, no credit card dues, no medical bills, no student loan – nada! Sounds pretty fantastic, amirite?
Bottom line: debt is robbing you of a better life – and the sooner you can get it paid off, the sooner you will be free to live your own life, your own way, without having to answer to anyone.
Getting out of debt isn’t easy – it requires making changes, sometimes big ones, and change is never easy. But continuously reminding yourself of all the ways your life will improve is a great way to stay motivated. Here’s something else to remember: one has ever said I wish I didn’t get out of debt.
5 Reasons To Pay Off Your Debt
The idea of facing your debt can be overwhelming. In fact, many debt plans fail because there is no real motivation – no why behind the effort it takes to become debt-free.
In order to stick to a plan and ultimately get out of debt, you have to remind yourself why you’re doing it – all the ways your life will improve both now and down the road. So take this list, write it down, tattoo it on your arm – I don’t care – just find a way to remember how what you’re doing will change your life forever.
1. Financial Security
Financial security is about being in control of your own decisions – having enough money to cover emergencies and reach your goals without being at the mercy of a lender. Every debt payment is money that could be going toward emergency savings, a big purchase, retirement, your kids’ college fund and more. Once you become debt free, you can be financially secure and have peace of mind knowing that your money is truly yours to be used however you wish.
2. Spend More on What You Love
Getting out of debt gives you the freedom to spend more money on the things you love to do in life – without cringing each time you swipe your card. A lot of people get into big trouble because they end up making the purchases anyway and just go deeper and deeper into debt until they reach their borrowing limit. Then when they really need money for an emergency, they’re out of luck. Getting out of debt will allow you to afford doing what you love without compromising your financial security.
3. Your Income Becomes Your Money
When it comes to building financial security and long-term wealth, a common mistake many people make is focusing too much on their income. It becomes an excuse – I don’t make enough money to save, pay bills, go on vacation – whatever. When the truth is, it’s your debt that’s the problem. Regardless of how much money you make, you can’t take full advantage of your income as long as you have debt payments going out each month.
Imagine having a hole in your pocket – no matter how much cash you put in there, until you patch up that hole, your money will continue to disappear.
4. Improve Your Credit Score
Building a strong credit history is one of the most, if not the most, important aspects of your financial life. Having a good credit score is what allows you to get a mortgage or a car loan, borrow more money when you need it, and in some cases, get a better job. To get a good credit score, you have to reduce the amount of debt you owe, especially credit card debt. When you start to pay down your balances, you will quickly see your credit score begin to go up – giving you more flexibility in all areas of your financial life.
5. Reduce Stress
Money is one of the leading causes of stress in America, with the majority of Americans reporting that their finances cause them stress. Getting out of debt is about freedom and peace of mind. Eliminating debt from your life will allow you to spend more of your time and energy on the things you love in life.