Debt can seem insurmountable at times. To help yourself out of debt quickly and successfully, follow a plan such as budgeting or working with a reputable debt settlement company.
Make extra payments toward debt with higher interest, instead of only making minimum payments – this strategy, known as debt avalanche method, saves money in interest over time.
1. You’ll Have More Money
Debt-free living means more money available for investments such as homeownership or retirement savings, not to mention self-care services such as workout classes and healthy foods at specialty grocery stores.
Start saving by placing a spending freeze on entertainment expenses and cancelling streaming and gym subscriptions you don’t use. Earn extra income by working overtime or taking on side hustles to boost savings.
2. You’ll Have More Time
Living without debt requires creating and following a strong budget and savings strategy. By regularly setting aside money in savings accounts, you can make greater use of any funds available.
This can be especially helpful for those saving for a down payment on a home or car, and provides more flexibility if something unexpected comes up that needs covering. Stress over debt can negatively impact both physical and mental health in long-term.
3. You’ll Have More Freedom
Once your debts are paid off, the portion of your paycheck that was allocated towards payments becomes your own money to spend or save as you choose. Perhaps starting an emergency savings plan or using this money for down payments on houses, tuition payments for college or taking steps toward realizing other dreams might be worthwhile investments.
Financial independence can be achieved, but you’ll need to work towards your goal with persistence. Perhaps working more frugally or even switching jobs might help get you closer to debt-free living.
4. You’ll Be More Efficient
Debt can quickly undermine your financial wellbeing, yet getting rid of debt may allow you to concentrate on other goals such as savings or retirement planning.
Step one of debt freedom lies in changing your lifestyle habits and attitudes. Our qualified financial coaches are on hand to assist with creating a debt repayment plan. Sign up now; it’s free! Just click the button below.
5. You’ll Have More Savings
Paying off debt should be a top priority for many. Reducing high-interest consumer debt can free up funds that could otherwise go toward non-essentials like entertainment and travel.
Instead of spending your cash on new running shoes or designer fabric for crafting projects, consider setting aside what would have been spent to fund an account instead and investing it over time using compound interest – this way your savings goals may be reached sooner!
6. You’ll Have a Better Credit Score
An impressive credit score can bring many benefits beyond simply qualifying for loans; such as lower insurance premiums and improved employment prospects.
Living with debt can cause anxiety that manifests itself through arguments with loved ones and physical ailments such as high blood pressure. Eliminating your debt may help alleviate some of this tension and make you a happier person overall.
Start by prioritizing debt with the highest interest rate first and use a debt payoff chart to track your progress and keep yourself motivated.
7. You’ll Have More Money to Spend
There’s plenty of generic advice out there on how to become debt free, such as cutting up credit cards or forgoing restaurants, but instead try saving more.
Start by opening an emergency fund savings account. Make it your goal to deposit into this savings account regularly.
Now, instead of allocating all your income towards debt repayment, a portion can go toward investments or even taking a vacation! Make the most of this newfound financial freedom!
8. You’ll Get to Finance Your Own Dreams
Debt repayment may seem impossible, but it is achievable. Make a budget and use an app like Debt Repayment Tracker to monitor your progress.
Once your debts have been prioritized from smallest to largest, start paying down the one with the smallest balance first. When that debt has been cleared off, use its payment towards paying down another debt of similar size.
Are you ready for change? Give Financial Peace University (FPU) a try; its proven plan has helped millions gain control of their finances and pursue their dreams.