Five Reasons to Get Out of Debt

Mickey | General | Wednesday, December 22nd, 2010

Debt can ruin lives. What can start out as fun or necessary – getting a lot of money to make unneeded or needed purchases – can leave scars that can last a lifetime. One of the foundational steps for any self improvement program is getting out of debt. This article will not teach the ways to get out of credit card debt or give any other get out of debt advice  – plenty of articles do that. Instead, this article will give five reasons why getting out of debt will change your life:

(1) First, and most obviously, having less debt will help contribute to less stress in your life. Debt can hang over you, especially if you have collections agencies calling your house. Wiping out that debt can eliminate one of the central tensions that can destroy relationships.

(2) By eliminating your debt, you’ll improve or protect your credit score. This number is your financial vital sign, and anything that will improve or maintain its health will be crucial.

(3) You can make the new purchases that you need or make the moves in your life you need to when you are carrying less debt. For instance, if you want to go back to school or buy a new house, you’ll find the job much more difficult when you’re carrying a heavy debt load.

(4) All of this will lead to increased flexibility, and thus increased happiness. Once debts are paid off, you’ll have the option of quitting your job to start something new, or taking a chance on a new endeavor like a business.

(5) With debt gone, you can begin working towards the goal of true financial freedom. This doesn’t just mean ‘retirement,’ though of course that’s included. Broadly, it encompasses everything you can do to make you financially free in the short- and long-term. Getting rid of debt is the first step down that road.

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