If you look at the problems alone debt causes, you’ll see there are many reasons why you should get out of debt fast. Debt can negatively impact every area of your life.
All of the solutions it provides are temporary and the bottom line is ultimately the cost becomes too high to stay in debt- delayed peace of mind and financial security. The rewards for getting control of your money and getting out of debt are all the motivation you need.
Getting out of debt was the main reason we decided we were no longer going to settle for a mediocre financial future for us and our kids.
We’d just made the biggest purchase of our lives and it made us look closer at our finances and forced us to think hard about where we were going.
We knew how to make money, and had figured out how to increase our income year after year but at the same time our debt increased. We thought that making more money was the solution to our financial problems but proved it wasn’t. Changing our money mentality and beginning to focus on getting out of debt was the game changer for us.
15 Reasons Why You Should Get Out of Debt Fast
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1. Get off the Struggle Bus
Studies show that 78% of Americans struggle with making ends meet. A large part of that is due to the debt burden they have. Consumer debt in America was approaching 14 trillion dollars towards the 3rd quarter of 2018 and is steadily increasing. Student loans, auto loans, credit cards and mortgages are on the rise with no end in sight.
That’s the debt culture we live in. Getting control of your finances by deciding to get out of debt will help you change your spending habits and put you on the path of Financial Freedom.
You can start by tracking all of your debt in undebt.it and setting up a repayment plan. We use the debt snowball method where we pay on the lowest balance first then roll that payment onto the next debt once it’s paid off. It’s exciting to see the amount of money you can contribute to paying debt grow each month!
2. Gain Control Over Your Finances
Debt is someone else controlling something you “own” and letting you pay to use it but having the power to take it away from you when you stop paying.
A little dramatic? Maybe, but you get the point, and any way you look at it, debt is not the best we can do. It’s a way of life built on a lack of control which creates a lot of issues for people.
First of all, you subconsciously get used to not having control of your money and you can see how that can easily create money management issues
3. Eliminate Stress & Anxiety
Secondly, studies show this lack of control is a major cause of stress and anxiety. The National Institute of Mental Health states 40 million Americans suffer from anxiety and financial worries are a huge trigger. So it’s safe to say borrowing actually steals our quality of life. So ask yourself- Is it worth it?
4. Destroy Your Paycheck to Paycheck Mentality
Another good reason to get out of debt fast is because it’s too easy living beyond your means when you can borrow now and pay later. We get it. But we know all too well it will eventually catch up to you. Unwise spending habits create a trap that prevent you from being able to experience financial freedom. Payday comes and it’s gone before you can enjoy it. Being strapped down with debt are all symptoms of paycheck to paycheck living. You can’t save so you borrow for that major purchase which adds another monthly payment to your monthly expenses making it even harder save. It’s a vicious cycle or roller coaster and not a fun one.
5. Relieve the Pressure
The constant pressure of having to work to pay your bills and the lack of control over your money can damage relationships, work or your health. Financial problems rank in the top 5 reasons why marriages end. Paying your debt off immediately puts you on the path to Financial Freedom and gives you control over your money.
6. Experience Financial Freedom
Debt free living is critical to achieving financial freedom. The pressure to work is gone while your passive income covers your expenses so you can focus on increasing your savings, investments and pursuing your passions.
7. Gain Confidence
Achieving a debt free lifestyle creates confidence and peace of mind. You’re in control of what’s coming and going out. You believe in your ability to succeed and this positively impacts other areas of your life.
8. Increase Your Quality of Life
Debt free living means more money stays in your pocket so you can enjoy more of your life. Travel to that tropical or remote destination. Take wifey on a 2nd honeymoon. Plan more family vacations. Instead of dreaming about that massage, now you can actually get it. Heck join the monthly massage club while you’re at it. Buy organic and ditch the GMOs. Order from the menu without looking at the price! There’s a whole ‘nother side of fun when you don’t have to worry about being able to afford it. A great book on putting the Joy back into your life is The Joy Plan by Kaia Roman. She learned to stop worrying about money and work and it transformed her life.
9. Give Generously
One of our favorite reasons and motivation for getting on the Financial Freedom road is to be able to give more. Financial freedom puts you in a position to help more people and make a greater impact. You can join in Our Freedom Road’s campaign to help charitywater.org build more wells in Africa.
10. Retire Early
No debt means you can begin pumping more money into investments and your Financial Freedom account. The faster you reach your Financial Freedom savings target balance, the faster you can retire and say goodbye to that 9 to 5.
11. Establish Stronger Relationships
If you’re single, having zero debt can help your confidence in building a solid foundation for your relationship. You’re bringing less baggage into a relationship and preventing future relationship-ending problems. <- And this one’s a BIGGIE! Having no debt also makes it easier to combine budgets with your future sweetheart without any guilt or conflict. Probably the best thing about being debt free for singles is CHOICE. You will most likely want to find someone that has been working on their finances as hard as you have and you won’t settle!
12. Become an Even Better Parent
As a parent, what can be better than seeing how happy your kids are when they are well provided for. Being a wise money manager and debt-free means you can take better care of your kids and that alone is all the motivation you need to get out of debt. Peace of mind comes knowing you’ve got this and those smiles on their faces prove it was all worth it.
13. Teach Your Children Good Money Habits
You can teach your kids how to manage their money and know they will grow up without having to experience the common financial issues most people face. Not getting proper financial education during childhood is the number one reason adults struggle with money management.
14. Shop Guilt-Free
No-guilt shopping is another reward for getting control of your finances and paying off your debt. Buying stuff no longer has to cut into other financial obligations and you have more than enough left over to spend on things you enjoy.
15. Increase Your Net Worth
Once your debt is paid you can focus on buying assets that don’t depreciate and invest in opportunities in line with your Financial Freedom Roadmap. Debt can limit you from thinking about investing because your prior focus was paying bills.
Hopefully this list of reasons for getting out of debt has lit a fire underneath of you! Setup a debt repayment plan and stick to it. As long as you have a debt repayment plan you will make progress on your financial freedom goals.
Each month you will see progress and you will see how your spending habits and saving habits begin to change. Review your progress each month to see where you are. Tracking is a guaranteed way to see positive results in your financial results.
In a year you will look back and see how much you’ve accomplished and how your quality of life has improved by staying on your freedom road.
Are there any struggles you’ve experienced with paying of your debt? What’s your motivation for getting out of debt?
- 15 Reasons Why You Should Get Out of Debt Fast
- 10 Steps to Stop Living Paycheck to Paycheck
- The Beginner’s Guide to Financial Freedom