If you’re in debt already, it might that you don’t need any incentives to get out of it.
You will understand the difficulties it can cause in your life, so you may be doing what you can to get out of debt already. We wish you every success if so.
But if you’re somebody who habitually takes out loans and credit cards, or if you’re pretending to yourself that you don’t have a debt problem, then you need to be mindful. You will soon learn the reasons why debt can be bad for you, especially when your creditors start ringing or writing to you to claim back the money owed.
The threat of your creditors badgering you is just one incentive to remove yourself from debt. But here are two other incentives that you should also consider.
#1: You will be in a better position to reach your financial goals
If you’re forever paying off your debts, you will have less money for the things you want or need. We are thinking about vacations away, home improvements, and any other nicety or home essentials that will add value to your life. You will have less money for your retirement too.
Of course, you might assume you can buy some of what you desire on credit. However, your credit score will be negatively affected if you have one too many debts, especially if you have defaulted on any of them, so you won’t actually be allowed credit. You might then turn to a cash advance lender as they rarely take credit scores into account, but because of the massive interest rates on their loans, you will be digging yourself into deeper financial trouble if you take this step.
The best way to reach your financial goals is to start saving. And the only way you are going to save properly is by freeing up your finances. As such, you should remove yourself from your debts as quickly as possible.
#2: You will be less likely to suffer debt-related health problems
As can be seen in the following article, debt can be very bad for your health. Many people suffer from stress, anxiety, and depression because of their debt problems, and it might be that you are already experiencing some of these health issues if you owe a lot of money. If you’re in debt, you may struggle to afford the healthcare you need too, so this will also have a knock-on effect on your wellbeing.
The best way to release yourself from stress and other health problems related to your finances is to cure yourself of debt. You can do this by dealing with it yourself, perhaps by selling assets so you can pay your creditors, or by making extra income to pay off your debts. You could also seek support from a debt relief charity or a debt consolidation expert, as you would then be given the help you need to become financially free. For one example of financial support, click here!
If you’re in debt, consider what we have said here. For your future health and happiness, it’s in your best interests to remove yourself from debt as soon as you realistically can. Do what you can yourself but remember to seek support if your debts are currently overwhelming you.