Living a debt-free life can be advantageous in ways that go beyond the obvious. While the journey to debt-free living may be challenging, the payoff more than justifies the effort.
Consider the following 10 reasons to prioritise getting out of debt:
- You gain complete financial freedom
Having no outstanding debts means you gain full control over every penny you earn and save. No longer are you tied to crippling debts which can make it difficult to claim ownership of your funds. You can use a bridging loan as a means to consolidating debt.
- You benefit from total peace of mind
The psychological benefits of getting out of debt are often overlooked and can be life changing; with no debts you never have to worry about falling into arrears, or running out of money each month. You know exactly how much money you have, and budgeting becomes much easier.
- You feel a real sense of pride and self esteem
Speaking of psychological benefits, there is something satisfying that comes with no longer owing money to anyone else. Primarily due to the fact that you know you are no longer paying any interest on your outstanding debts which is tantamount to throwing money down the drain.
- You will enjoy a better quality of life
A life without debt means more money in your pocket each month and less money wasted on interest and borrowing costs. Consequently, you will find yourself with significantly more money available. Even if your income has not increased, becoming debt-free can make you feel significantly wealthier.
- You will benefit from a much higher credit score
Paying off debt is exactly the kind of thing the major credit agencies in the UK like to see. The more responsible you are with your money, the more likely you are to stack up an impressive credit score; this means that if you do decide to apply for a financial product such as a bridging loan in the future, you will be eligible for a competitive deal at a lower rate of interest.
- You can finally get a job you enjoy
Most people choose the employment they need, rather than the job they want. With no debts taking a toll on your finances, you may no longer need to work a job you hate just to pay the bills. You may finally have the freedom to pursue the job of your dreams, or at least a job you do not despise.
- You will have more money to invest in your future
No debts mean more money in your pocket each month; this in turn means more available cash to allocate to investments. From pension pot contributions to crypto currency purchases to getting involved in the stock market, you will have so much more freedom to make your money work harder for you.