5 Reasons You Want to be Debt Free

Take a look in your wallet. Is it full of credit cards, most of which have hefty balances, or does it hold a couple of cards that you can use (along with an array of membership cards, IDs, etc.?) Help lighten that load in your wallet! Here are 5 reasons you want to be debt free.

5 Reasons You Want to be Debt Free

1. You’ll be happier at bill-paying time.
When it comes time to pay your bills, do you cringe at the stack that you have to pay, or do you take it in stride and know that some bills are a fact of life? Making the choice to be debt free (and working toward getting there) will help that stack to be shorter and only full of monthly expenses like utilities. Never again will you have to open a credit card statement in fear of what the balance might look like.

That being said, being debt free does allow for the use of credit cards, as the benefits available for some cards makes them worth having. It just means that you pay off your balance each and every month.

2. You’ll have more money to work with from one month to the next.
Without loan debt and credit card debt, you will have more room to work with the money that you earn each month. Rather than trying to figure out how to pay the minimum balance on a number of different forms of debt, you can put that money toward other expenses or into savings. Over the course of time, the money that you would have put toward credit card and loan payments will really add up, making for some wiggle-room in how you spend your money.

3. It saves you money.
When you take on debt, whether it is a car loan, student loan or a new credit card, the money isn’t given to you for free. Interest rates can range depending upon lender and your credit history, but one thing is for certain…you will pay interest. Interest rates will cause you to pay far more in the long run than the initial cost of the purchase. When you are free of debt, you are able to avoid these fees…and put more money into the bank.

4. It makes those unexpected expenses a bit more comfortable.
How comfortable would you be if your car stopped working? How about if your hot water heater died? Would you be ready for the repair (and maybe replacement) costs, or would you have a major financial problem? Being debt free makes your budget more open for the unexpected and, even if you have to take on debt short-term, makes you more able to pay it off quickly. While no one likes to have to think about unexpected costs, they are much more manageable when you have a plan in place for when they occur.

5. No need to feel anxious when the phone rings.
Do you get nervous when an unknown number pops up on the phone? When you’re debt free you can rest assured that that caller isn’t a creditor calling about an unpaid bill. Being free of debt can make for peace of mind in knowing that you don’t owe any one or any company outstanding money and that you truly can use your earnings as you would like from one month to the next.

Being free of debt will help you to feel more at ease with your finances and to put yourself in better position for expenses that may come your way!

Have you found other benefits to being free of debt? Please share your reasons for wanting to be debt free!