Paying off debt can be life-changing. It will reduce stress, free up more of your income, and give you more freedom on how to spend your time. But what are some of the more unexpected benefits of paying off debt?
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The Unexpected Benefits of Paying Off Debt
It can be hard to stay motivated while paying off debt. For most of us, it takes patience and consistency to get the job done, and it can be difficult to stay focused.
Whenever I start losing my motivation on my debt free journey I like to think about all the amazing benefits that come with living a debt free life. Less financial stress, fewer bills to pay, and not paying interest are a few of the reasons I’m working on paying off my debt.
Today, I wanted to share a few of the more unexpected benefits of paying off debt to help keep you pushing ahead on toward your own debt freedom!
1. Actually Owning Your Things
While it’s nice to think about not having to make monthly payments anymore, it’s even nicer to think about actually owning your things!
Have you ever stopped to think how much of your stuff is funded through debt? Especially if you have credit card debt, a lot of the things around you are probably not paid off yet! Getting your debt paid off will give you a sense of accomplishment that you worked and paid for everything you have.
I’m especially looking forward to paying off my car and our house – I can’t even imagine what it will feel like to own my two biggest assets and not have to worry about loan payments or how much interest I’m paying.
2. Peace of Mind
You probably don’t even realize how much stress debt puts on you. If you are always worried about having enough money to cover all your bills you are probably carrying more stress than you think.
I remember when my boyfriend finally paid off his truck. He said after making that last payment he immediately felt like a weight was lifted off his shoulders. He didn’t have to worry about what would happen if there was an emergency and he couldn’t make his truck payment – his truck is just his and he doesn’t have to worry about how much it’s costing him each month.
I am very much looking forward to the peace of mind that will come with no longer having debt. With the loans I have paid off so far, it has been an immediate feeling of being relieved I have one less thing to worry about.
3. More Flexibility
Once you get all your debt paid off you will have a lot more income to work with every month. That opens up a lot of new possibilities for your life!
Whether you want to make a career change, own your own business, or just invest more for your future, paying off your debt lets you have a lot more resources to make those decisions. There will be a lot less pressure to consistently bring in an income when you don’t have as many regular bills. You might be able to take a new job you’ll love, but that offers less pay. You might be able to leave that toxic office environment and start something of your own.
Whatever your goals are, keeping more money in your pocket instead of it going to make payments can go a long way toward making them happen.
4. Ability to Help Others
I already mentioned you’ll have a lot more income to work with when the money isn’t going straight to debt. You could also use that extra income to help others.
You will have the ability to help family members if they hit hard times. Or, you could donate more to your favorite charity – or even start your own! You’ll have the freedom to give more to the things that are important to you.
This is probably one of the things I’m looking forward to the most when I become debt free. I’ll be able to help out my local animal shelter more and in new ways.
5. Improve Your Credit Score
Paying off debt will also improve your credit score. This can help you get approved for better interest rates if you do have to take out loans again or buy a new house. You will also have an easier time getting approved.
Some employers look at credit scores as well, so if you do need to find a new job this could help you out. While I recommend avoiding going back into debt once you’ve worked yourself out, having a higher credit score will help you get the best deal possible if you do find yourself needing to use credit again.
Getting out of debt is a goal that takes time and patience, but will have big benefits when you get it done. What benefits of debt free living are you looking forward to the most?
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