Our lives are simply full of challenges and obstacles. From providing for our family to staying healthy, there are so many things that can put a strain on our lives. Debt may insidiously permeate our whole lives and there are benefits we can get by eliminating it from our lives. Here things that can motivate us to eliminate debt as soon as possible:
1. Improved social relationships:
If we constantly think how we can make mortgage and car payments, we are less motivated to have stronger social relationships. Our days could feel like a struggle and those around us could be affected by our mood. Conflicts and relationship breakdowns may ensue.
2. Our money is ours:
When we are debt free, any money we make can go straight into our pocket, instead of others’. Okay, perhaps, the taxman wants a portion of our income, but at least we can keep most of our money. In fact, people who have huge debts could spend much of their money only for paying the interest. Obviously, there are good debts, such as student loans and many businesses couldn’t thrive without proper loans.
But, many people simply spend too much money on inessentials. As an example, we could choose more expensive cars, when more basic models are already adequate. This could cause us to pay more in car loans.
3. We can get money from interest:
Interest works both ways; it can make us lose money or earn money. It is simple, if we can limit debt; we will have more money in our savings account and this helps us to earn more through interest. It is important for us to pay more than the minimum repayment amounts. As an example, people who pay double the required monthly payments on a 25-year mortgage with 5 percent interest could pay off the house in just 17 years.
This can save us more than $50,000 in interest rate. If we put the money in savings accounts, it is possible to get a few hundred dollars of free cash each month.
4. We have more money for retirement:
Many people spend their productive years to prepare for retirements. In this case, we need to quickly pay off our debts, so we can save money more quickly. This will allow us to retire sooner or gain more money when our retirement years finally arrive. People who free themselves of debt at a younger age could have immense financial benefits.
5. Improved health:
Debt is one of the causes of psychological issues, especially stress. Studies have shown that fatigue, muscle pain, headache, sex drive disorder, autoimmune disease, heart disease, sleep problems and digestive disorders can be aggravated by stress. For many people, stress has affected their health and by eliminating debt, we can have much healthier lives.
6. We can give more:
One of the purest enjoyments in live is the sensation we feel when give things to others. Witnessing gratitude and joy can be quite satisfying for us. By having less debt, we can allocate more money for charity and gifts. Many have shown that they can receive more by giving more.