There are many different benefits of being debt-free. If you would like to learn more, you can check out our reasons here why you should try to pay off debt.
More than three-quarters of all Americans find themselves in some sort of debt whether it be credit card debt or a home mortgage or anything in between.
Do you find yourself in debt? Do you wonder, “What is it like to be debt-free?”
It may seem like an impossible achievement, but being debt-free has a lot of benefits. Keep reading to learn why you should pay off your debt and live a debt-free life.
What are the Benefits of Being Debt-Free? Check Out These Nine
Debt has a huge impact on your financial freedom. When you have debt hanging over your head, you don’t have the freedom to purchase things you want and sometimes even things you need. Let’s look at the benefits of being debt-free.
1. Less Stress
Can you imagine living debt-free with no mortgage even? Your paycheck can go to your living expenses and not to paying down debt.
Having debt causes a lot of stress. You are always worried about pulling yourself out of the black hole in which you put yourself. Being debt-free is like a weight lifted off you.
2. Better Credit Score
When you apply for a job, try to rent an apartment, or buy car insurance, to name a few, people take a look at your credit score. A better credit score comes from being fiscally responsible and will score you lower rates and make you look better to a potential employer.
3. Model Good Financial Habits for Your Children
Your children model your behavior no matter what you tell them. Show them good spending habits. Living within your means without debt is a good habit to model for them.
4. Feel More Secure in Hard Times
When hard times hit, like the coronavirus, you may be out of a job or lose money in the stock market. If you’re debt-free and have been able to put money aside, you’ll ride out the storm a little easier.
5. Retire Earlier
Money that would otherwise go to pay off debt can go in a retirement fund. You’ll be able to enjoy retirement at an earlier age.
6. Ability to Help Others
When you have an extra income because you don’t have debt, you are more likely and able to donate to charity and help those in need.
7. Improve Your Health
Stress is not good for you! Less debt = less stress = better overall health.
8. Save Money in the Long Run
Paying interest over several years takes a hit on your finances. Imagine the money you can save paying your debt off earlier.
9. Financial Freedom
When you are not tied to credit card bills, etc., your money is available to do the fun things you’d like to do!
Do you ask yourself, “how does debt consolidation work?” Find the answer here.
Debt-Free Living
Now that you know the benefits of being debt-free, you’ll want to take the steps to pay off all your debt and learn how to live debt-free.
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