There are many people who will find themselves in an endless cycle of debt throughout their lives and you might be one of them. You may have been brought up with it and think that it’s a normal part of living.
Perhaps you don’t think twice about that car loan because, after all, you need your car to get to work, right? And you don’t think about putting the groceries on the credit card at the end of the month because you’re getting paid next week and you’ll pay it back. Sound familiar?
You might not think that your debts are a problem – you can cover the payments easily after all – but why wait until they are? Taking on a debt management plan is one way that can help so click here for more information on on getting on top of your debt. Meanwhile, here are some reasons to get out of debt now… and stay that way:
You are throwing money away
Do you remember how those debts built up and what you bought with them? What do you really have to show for it? How much of it has ended up lost, unused, damaged or sent to the dump over the year? And you’re still paying for it. The stuff you bought has gone but the debt remains. You’re throwing your money away.
Your money is never your own as long as you owe somebody else
Work out how much you spend on your debts over the course of a year. Now imagine what you could do with that money if it were in your own pocket. You could spend it (and not pay any interest in credit repayments), you could save it or you could invest it. You would control how and where your money goes – not some multi-billion pound company that counts the interest you pay them with glee.
You will be happy
Or at least, you’ll be much happier without the worry of how to pay the demands which sit unopened on the kitchen table or which repayment needs to be made most urgently. And you can’t put a price on happiness.
You’ll never have a payrise high enough
When you become used to living a champagne lifestyle on credit, the beer money income will one day be too little to cover the repayments. Any pay rise you receive in the future will be spent trying to play catch-up on your debts. Get rid of the debts and start planning how each pay rise will shape your future. Will you use the extra money to invest in an early retirement, will you take a year out to travel or will you pay down your mortgage early? The choices are yours – but only when you get to keep your money for yourself.
You can set an example to your children
Teaching your children the value of money and the true cost of debt can be one of the most useful lessons you can give them in preparation for adulthood. Lead by example and show them how it’s done.
You can handle the rough with the smooth
Having no money to fall back on when your pay day is a week away and the credit card is all maxed out is an awful position to be in if an emergency arises. You might find yourself having to borrow from friends or family with a promise to pay it back. Without debt it is easier to create an emergency fund that you can turn to in times of need.
The world could be your oyster
How could your family benefit if you had no debts? What could you do that finances restrict you from doing now? How would your life improve? When you are in control of your money you have choices and opportunities. When you have debts, it’s your money that controls you.
These are just seven reasons to get out of debt but I am sure you can think of plenty more. Find your motivation and make it happen!