Getting into debt these days is so easy. Getting out of debt can be a different story. Lenders are dying to get you signed up whether it’s for a credit card or some type of loan. I remember my very first credit card; it was the hardest one to let go. It’s like it held a special place in my heart. I remember needing it to “build my credit.” My plan was to pay it off every month. Paying it off monthly actually did work for quite some time. But of course, over time I ended up with more than just that one credit card. And there was a time that I had a balance on my credit cards at the end of the month. Luckily, it didn’t take me long to figure out that’s not the way I wanted to live.
Here are the reasons why I enjoy being out of debt and why you need to get out of debt as well.
1. No one can ever take it.
Whether it’s your car, your house, or some fancy toy, you own it and no one can take it away. There’s a certain feeling that comes with knowing you own something, especially if it’s something that was expensive, like a car or house. I’ve owned all my cars before they went caput, some sooner than others. Every time I’ve paid a car off it was like a breath of fresh air. With our most recent car purchase, we were determined to not have a monthly car note by paying cash. I can’t wait until the day we are able to pay off our house. I know that’ll definitely feel like a breath of fresh air or more like I breathed in a whole tank of oxygen!
2. No monthly bills (with interest).
Since you own it, there’s no need for more bills coming in the mail (or however you’re receiving your bills these days). And if there are no bills, there’s no paying interest. The bad thing about interest is that it keeps accruing until you pay it off. And by then, you would have paid way more for the item than you probably would have been willing to pay if you had paid cash. So what’s the point?
3. It’s less stress.
Let’s face it. Being in debt is no fun. It might have been fun spending the money, but it’s definitely no fun paying it back. The bigger the amount of debt a person has to pay back, the more stressed they tend to be about it.
And let’s not forget about working. Would you be at your current job if you didn’t have to be? Why do you have to be there? Most people work not because they want to, but because they need to. They need to work to provide for their family. However, they also must work to pay their bills, which unfortunately includes paying any debt owed. When you have debt this can cause further stress for you because there’s always the fear of, “What if I lose my job? How will I provide for my family? How will I pay off any of this debt?”
4. How long were you planning on being in debt?
I know it’s not a reason to get out of debt, but I find this to be a thought-provoking question. Many times people buy stuff on credit or take out loans, but I wonder if they ever thought about how long they were going to carry that debt.
- Is it really worth it instead of saving up for it and paying cash?
- Is it worth paying interest?
- Is it worth getting another bill in the mail with a minimum payment?
Yes, you could pay it off in full when the bill comes, but what if something comes up – an emergency that’s more important than paying the credit card in full when you could just make the minimum payment. Is it worth carrying around the debt just so you can have the instant gratification? So again, how long were you planning on being in debt? When are you going to get out of debt?