It’s easy to keep kicking the can down the road when it comes to paying off your debt. Soon the interest starts adding up, making your debt even more unmanageable, until you trip into a debt spiral. That’s why it’s so important to find motivation by reminding yourself of the benefits of eliminating debt. In case you need a refresher, here are seven benefits of life after debt.
1. Free Yourself from Creditors
Creditors maintain a certain amount of control over their borrowers. They decide when and how you pay them, and can even increase your interest rates. Being debt free allows you to take back control of your financial life. Your creditors will have no reason to harass you. That means no more creditor calls, no more late payment fees, and no more interest.
2. Earlier Retirement
Every penny you’re spending on paying down your ballooning debt is a penny you can’t use to save for retirement. Consider that the penny saved for retirement will increase in value over time if invested wisely in a tax advantaged retirement account. The earlier you pay off your debt and start saving, the more you will reap the benefits of compound interest in retirement.
3. Guilt-Free Spending
When you’re in a debt spiral, you often don’t have cash, meaning you have to go deeper into debt just to pay for essential items and bills. When you end the cycle by paying off your debts, you can check out at the grocery store without feeling guilty.
4. Less Bills
You won’t have to worry about making monthly payments and late fees on multiple credit cards when you no longer owe your creditors. That means you can focus on paying for bills like insurance and utilities, while budgeting for savings.
5. Better Credit Score
Having a high credit utilization score and being late on payments will kill your credit score. A poor credit score can hinder your ability to rent an apartment, get a job, or finance a car. Paying off your debt is the first step to healing your credit score.
6. Ownership
If you’re paying a mortgage, then the bank owns your home. If you’re paying an auto loan, your lender owns your car. When you pay off your secured debts, you no longer have to worry about the bank foreclosing on your house or getting your car repossessed because you truly own your assets.
7. Increase Future Earnings
Every time you charge your credit card you are borrowing from your future income. That $200 pair of sunglasses you buy now, is $200 out of your paycheck next month. Debt lowers your future standard of living by spending your future earnings today. Paying off your debt allows you to make the most of your income.
Start Eliminating Your Debt Today
You can start enjoying the benefits of life after debt by getting in touch with a trusted consumer credit and debt relief solution company like Americor.
Contact a certified debt consultant today to receive a free debt analysis. Learn more: what is a home equity loan.
Click here to apply: https://apply.americor.com/new