Not all debt is bad, but when debt is bad, boy is it bad. It serves as a ball and chain that can put you at risk of sinking down a financial hole if you’re unable to keep up with it.
However, even when you are able to keep up with payments, it can prevent you from living with financial freedom or even jobs where you work alone, meaning there may be quite a few things you can’t enjoy just yet.
Let’s look at a few.
Money stress is a big concern for a lot of people and it has broader implications for how we live life than you might think. For instance, stress has a major impact on your sleep. The more stressed we are, the tenser we are at night, which makes it harder to fall asleep.
This sleep deprivation increases the production of the hormone that makes us feel stressed and the cycle continues. By getting out of debt, you can interrupt that cycle, and perhaps get a full night’s sleep for the first time in months.
Put Money Towards the Future Instead
One of the biggest problems of debt is that it forces us to be reactive. We’re always reacting to the debt that we owe, be it due to loans taken out or financial mistakes made. As such, we can’t be proactive about our future.
When out from under the weight of debt, you can start thinking about your long-term financial goals and how you can start contributing towards them.
Enjoy the Occasional Treat without Guilt
Sure, you might tell yourself that there are more responsible ways to use your money than a nice meal out, an evening at the movies or a trip to the city. However, when you’re in debt, these little splurges are truly counterproductive and increase your risk of serious financial plight.
When you’re out of debt, you can afford to let loose a little, to celebrate, and to treat yourself. There’s no need to keep beating up on yourself since you’re not really putting yourself in any danger.
Consider Switching Your Career
A lot of people are locked into a job that they don’t want due to the fact that they have no leeway to quit even if they want to.
If you’re one of the many to whom the phrase “I hate my job” has become a mantra, then it’s essential you get out of debt as soon as possible.
With fewer financial responsibilities, you can afford to take the risk that comes with leaving your role to be able to find better things.
Be as Generous as You Want to Be
You might be the kind of person to be generous even while in debt. While that’s admirable, it’s not exactly responsible.
You should take the time to focus on budgeting as much as you can towards reducing that debt so you get out all the sooner. That way, when you have the opportunity to give, not only can you give more, but you can give without hurting yourself in the process.
You can tip as much as you want, spoil your kids/grandkids/nieces and nephews, and be as charitable as you wish.
Use Credit Wisely
Getting into serious debt is the kind of life experience that, when you do it once, you’re not likely to do it again in a hurry. Sometimes, unforeseen events pop up and get you back in, but you’ll be better equipped and organized to handle it.
Otherwise, you can start using credit for purchases and financial long-term planning in the way that it’s meant to be used. You’ll be responsible, you’ll be proactive in paying it back, and you won’t take out any more than you know you can afford to pay back.
Ensure You Never Spend Too Long in Debt Again
As mentioned, you will be savvier about the risk of debt in the future. As such, one of the plans you might start making when you’re out of debt is putting aside money to build up an emergency fund.
These funds are designed to make sure you can cover any sudden major costs that might disrupt your financial security. It’s recommended you save around three to six months’ worth of expenses in your emergency fund so that, should you lose your job, you’re able to cover your bills until you get another job.
Take Up a Hobby
How much time are you spending on your debt?
How much time do you spend worried about it and how much more are you working to get out of it?
It’s all worth it because, in the end, you’re going to have a lot more of that time. In fact, you might have more than you know what to do with.
As a result, you’re free to pursue the things that really matter in life. A new job is just one example, you can invest time in a hobby or creative outlet instead, living a more fulfilled and well-rounded life as a result.
Take a Break
Something highly recommended for everyone as soon as they get out of debt is to take as much of a break as you can afford. Whether that means getting out of your house or simply enjoying a long weekend of eating junk food and binge-watching your favorite Netflix shows.
You deserve a break after all that hard-work and, unlike when you were in debt, you can now afford to do it without worrying about how many weeks you might set your plans back by.
The feeling of that weight off your shoulders isn’t something to be taken lightly.
Enjoy Your Debt Free Life
Why acknowledge things you can’t do while dealing with debt?
Simply put: to motivate you to get out of debt.
An organized approach to cut your costs with deals like free internet and a real effort to increase how much you’re paying towards the debt can make a huge difference.
You can get out of debt all that sooner and enjoy the benefits mentioned above.