Why should you aim to be free of debt? Having debt alters the way that you spend your money. Instead of spending money on the things you want, you have to spend money paying your creditors back. Not only can it be disheartening to see your hard earned money going out the window, but you can fall even further in debt if you are not able to make the payments on time. Aiming to be free of your debt has many benefits.
Keep Your Money In Your Pocket
You work hard for that paycheck that you get every week. Why should some credit card company get a slice of that money? While it might seem easier to purchase something and pay back later, the consequences of making payments with credit aren’t always apparent at the time. Before making any purchase with a credit card, you should think about the interest rate that you are paying to spend your money. Unless you can pay back that balance in the next 30 days, you are just paying someone to tempt you into spending more than you can afford.
Stress Out Less About Your Finances
What would you do if you ever lost your job? If you have no debt, you can ride out a job loss for a longer period of time. Making a large cash purchase won’t be as much of a strain on your finances if you are working just to replenish your bank account. Creditors will not be calling your house all day if there is no debt to collect. Living a life that is free from debt allows you to worry less about your cash flow.
More Freedom To Live Your Life
Most people have a job in order to make money. If you have no debts, you have more of a say in where you work. If you don’t like your job, you can quit because you don’t need the money right away. Sleeping in every morning is viable if you don’t need to work so many hours to stay ahead financially. You can take a vacation on a whim if you have enough money in your bank account. Without debt, you are free to live your life as you see fit.
Ensure A Secure Future
The ability to put your money directly into savings accounts comes in handy. There will be a time when you cannot work anymore, and you will need to rely on the money that you were able to save. Having a higher level of savings will enable you to have a more secure retirement. Having that safety net will also help you pay for health care and other necessities that seem to become more expensive over time. Your savings could also help your kids pay for college and ensure that they start their lives as free from debt as possible.
A life that is free from debt offers so many advantages. You will stress over your finances a lot less while avoiding the other pitfalls of debt. Keeping your money in your pocket allows you to determine where and when you spend it. Having the ability to make choices in your life is liberating and allows you to enjoy your life that much more.
Andy co-founded Credit Card Compare, an Australian comparison website where consumers can review and rate the best credit cards from across the whole market. If you are in debt and want to live a debt free life, he recommends using a 0% balance transfer in conjunction with the debt snowball method, a proven strategy for getting out of debt.