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10 Ways Life Gets Better When You Get Out of Debt

By , July 2nd, 2013 | 13 Comments »

eliminate debt

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.

Less Stress

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.

More Flexibility

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

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)

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  • freebird says:

    Getting out of debt is a great first step, but it’s just that– a first step. It gets even better when you build a savings cushion that amounts to several years pay. When you have this you no longer need a paycheck so work pressure magically disappears. Layoffs coming? Bring it on, and take some time off to relax…

    Also you can use your savings to make even more money. True interest rates are rock bottom at this moment, so you can’t earn much with CDs now, but there’s always dividend paying stocks and REITs and such. You can diversify away much of the risk. Once this income stream is large enough to meet your expenses, you can kiss your job goodbye forever if you like.

    So my message is don’t stop saving when your debt balance hits zero. Keep the momentum going, you’ll be glad you did.

    • Cam Woodsum says:

      Amen to what you are saying Freebird. Ideally if you’re saving money to reach a goal like paying off debt then you keep paying money after you accomplish your goal.

    • gina says:

      I think it’s a lot like dieting. You have to make a lifestyle change and stay with it. If you try to do it short term, the weight (in this case, debt) will come back.

  • gregory says:

    I don’t think most people realize how much stress debt causes until they are free of it. You know you’re stressed, but just no how much. Having recovered from being perpetually in debt during my younger years, I can say that it’s worthwhile making the effort to break the debt cycle.

    • Greg says:

      I agree. It’s difficult when you are actually experiencing it to have an objective view from the outside. Once you’re out of debt, you can see much more clearly how it affected you in a myriad of ways that you could never recognize while going through it.

  • Minny says:

    The comparisons between debt and weight are great. The work to get out of debt and to lose weight often become an end in themselves but there needs to be a new goal, a new plan for when it is over.

    The new goal is to stay out of debt, to stay a healthy weight. If these are not in place there is the risk of thinking – whew, that’s over! No, all it is is a new beginning.

  • savannah says:

    So what you are basically saying is that those in debt will have horrible lives. That’s terrific. Wonderful. If only it were that easy to get out of debt. I am guessing the person who wrote this rubbish has never had any debt of any kind. I suppose I should stop typing and head back to my life which is probably worse than yours.

    • david says:

      I don’t think that’s what’s being said at all. It’s merely saying that if you get out of debt, you will be less stressed and worried than you are now.

    • Kayla says:

      Yes, you took this post to incredibly the wrong way! It’s meant to be motivational to keep us pulling out of debt. I live a fine life while in debt, but often think about how much more financial freedom I’ll have once I’m completely out of it. Just one less thing to stress about.

  • Gailete says:

    While we still have a mortgage and we have two cc bills that we pay in full each month (it is hard to shove cash money through a computer to pay for things :)! The stress is going away so much. We have money stashed away for the first time in years. I just noted how much I was able to stash into our stock account and my Roth IRA in the past 12 months. Not much compared to some people, but for us very significant and it feels great!!!! And compared to a LOT more people probably more than they manage to save as they spend it all.

  • Kayla says:

    This is always great motivation. It can sometimes be hard to deal with the fact that it will take me close to 10 years to be debt free with my student loans, but still thinking about these things is motivation enough. It can be helpful to think about the fact that as long as I do things like pay off my car loan first, that will free up my minimum expenses by over $400 each month in about a year and a half — thinking about it incrementally instead of ‘I can’t be out of debt for another 10 years’ and many of these motivational reasons to keep working on my debt still apply!

    • Alexa says:

      This is a great tip! Nothing beats planned saving. Being responsible will free you of student loan payments faster than anything else. It’s very important to plan and it’s very important to save. Otherwise you’ll never stop paying off bills, whether they are loans, credit cards, or car payments!


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