Have you ever had to cut back on your expenses or choose between paying the water bill or the electricity bill? When you’re drowning in debt, it might seem as though you’ll never break free. It seems that there is always something that needs to be paid, yet not enough money to pay all of the bills that have come in. While it might seem at that time that debt will consume your life, there’s light at the end of the tunnel. Your life might seem stressful right now, but it will become remarkably better once you’re free of debt. Not only will you have freedom over your finances, but you’ll find your life has a lot less stress in it. Here are a few ways life improves when you get out of debt and why all your hard work getting out of debt is well worth the effort:
One of the best feelings you’ll have once you’re out of debt is the overwhelming sense of freedom. No longer will you be chained to loan payments or credit card payments each month. You’ll have the freedom to choose what you want with your money.
Of course, you won’t be nearly as stressed out about money after you get out of debt. While you may still have money issues or concerns, they won’t be nearly as gigantic as they were when you were swimming in debt. As soon as you get out of debt, you can kiss a lot of your money related stress goodbye.
You’ll also have a lot of flexibility now that you’re out of debt. When you’re in debt you often have to pick and choose what to spend your money on or perhaps even what bills to pay first. Once your debt is cleared away, you don’t have to bend your finances to pick away at bringing your debt down.
Financial independence is possibly one of the best ways your life will get better after you get out of debt. When you have financial independence not only is your life less stressful, but you have more avenues open to you. You won’t have as much trouble getting another loan or putting a down payment on a big ticket item. Not to mention, you’ll feel better about yourself now that you’re not chained to your debt.
Control Over Your Money
Getting out of debt also means that you once more have control of your money. Sometimes being in debt feels as if you have no control over your money and that your money belongs more to debt collectors and loan companies than it does to you. Getting out of debt now means that aside from normal monthly expenses, you have control over your finances. You can choose what to buy, what to invest in, or how much you want to save.
Ability to Save
Getting out of debt now also means that you can set more money aside in your savings. Many people don’t save money while they’re in debt because they’re too focused on paying down their debt. While this is understandable, it also means that by the time they get out of debt they may have no savings. Once you get out of debt, you’re free to start saving money again.
Building an Emergency Fund
Additionally, getting out of debt also means that you can start building an emergency fund. Having a savings account for vacations or big ticket items is all well and good, but having an emergency fund for emergencies is an even better idea.
Knowledge of How to Prevent Debt
You might be so excited that you’re out of debt that you start spending money without a second thought. But don’t let your spending habits lead you back into debt. Use the knowledge you gained from being in debt and getting out of debt to prevent debt from occurring again. You don’t want to fall into debt again, do you?
Staying Ahead of Your Expenses
After getting out of debt, you also have the benefit of staying ahead of your finances. While this might not seem like the most exciting financial decision you can make, it’s probably the smartest. For instance, you know when your monthly bills arrive, you know how much you’ll generally have to pay, and you know when they’re due. Now that you don’t have to worry about paying down debt, you can stay ahead of you expenses by setting aside the money each month or even prepaying for a couple of months.
More Purchase Choices
One of the best things about getting out of debt means that you have more power over your purchases. When you were in debt did you often choose to buy one item instead of two? Maybe you needed a new oven and a new set of tires for your car. While you might not want to go out and spend all your money at once, being out of debt means that you won’t have as much difficulty making the decision whether to buy a new oven or new tires.
(Photo courtesy of he Eyes Of New York)