5 great reasons to get out of debt

posted by in Debt, Wellbeing

IVA tips

There’s no time like the present to deal with your debts

Over the years we’ve found that people want to get out of debt for a whole host of reasons.

From buying a house to being able to save up for a rainy day, there’s no one-size-fits-all motivation when it comes to debt advice.

Nobody likes problem debt, but sometimes we need a bit more encouragement to get going and make debt freedom a reality. If you’re done with being in debt but need some inspiration, would these help your resolve?

1. Be the master of your domain

Whenever you’re in debt your money is never completely at your disposal. A portion of it will always belong to someone else. When you don’t owe a penny to anyone, you’re the master of your own money. You decide what you buy, what you save for and what you invest in.

Trying to save money when you’re in debt is an almost futile exercise. What you’re saving is almost certainly cancelled out by the interest you’re being charged. Focus on getting rid of your debt first and then you can think seriously about saving for the future.

2. You increase your future earnings

Whenever you take out credit you are – in effect – borrowing money from your future income. Any problem debt that exists in your life today can decrease the quality of life you have tomorrow. The sooner your deal with your debt, the more freedom you could have in the years to come.

Few things stand between you and your future goals like debt. Ask yourself: what could you accomplish once you’re debt free? Would you start your own business? Would you go back to university? Would you travel the world? Don’t be afraid to dream big!

3. You’ll be a happier person

This year with our ‘Debt in Mind’ campaign, we set out to highlight the links between debt and mental health. Millions of us fret over how to keep our financial plates spinning. It’s little wonder that this can have such a damaging effect on our happiness.

Many StepChange clients say how their lives have changed for the better now that they’re debt free. You owe it to yourself to be happy, and getting out of debt plays a big part in this.

4. Your children will thank you for it

As a child growing up in a household crippled by problem debt, I became acutely aware of the destruction it can cause in a person’s life. It made me terrified of debt as an adult (which is probably a good thing considering my job!) and it cast a cloud of anxiety over my childhood that could have been rectified had my mother been given free debt advice.

According to the Telegraph, your children learn much of their future attitude to money and debt from their parents. If you’re a frugal person who works to a budget and keeps debt under control, they are more likely to become adults who are financially responsible as well.

Your children also benefit directly from your debt freedom. You can do more activities with them that you may not have been able to do before. A trip to the cinema can be a fun family outing rather than the expensive stress-fest it may have been in the past.

5. You can handle nasty money surprises

So you’ve been trucking along for years, paying the minimum on all your credit cards and cutting down where you can to make ends meet. It’s usually during these ‘tightrope walks’ in our lives when something utterly ill-timed happens like a broken boiler, a trip to the vets with a sick dog or reduced hours at work.

It only takes one nasty income shock to knock your whole budget off-kilter. If you have no debt however, you’re more likely to have the money to absorb these unexpected costs. You can save the money you would have paid towards debt in a ‘rainy day account’, and have peace of mind knowing that you can soon get things back on track.

Your reason for seeking debt advice is your own, and no one reason is more valid than another. The key thing is to find your motivation to be free of debt..

If you’ve decided to get out of debt for good, our online advice tool Debt Remedy can give you a solution in just 20 minutes.

Rachel Connor has been with the charity for over 8 years, starting in Helpline before joining the MoneyAware team in 2012. Rach enjoys travelling, video games, watching anime, reading and creative writing in her spare time (currently writing a Young Adult fantasy series). She had a previous life as head writer on Cartoon Network's Ed Edd n Eddy and as a copywriter for LivingSocial. She's also written comics and graphic novels for the animated series Regular Show.

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Tags Debt Wellbeing
  • debtoutofhere

    How many people actually checked that there was a debt that you owed before you “paid” that debt?

    The sad thing today is that almost all “debt” is not your debt at
    all. As the USA is bankrupt (since 1933) you cannot accrue any debt…
    only a liability. This includes credit cards, loans, student loans etc.
    When you apply (legal def’ to beg) for a loan you actually create the
    “money” that the bank then lends back to you. Most people haven’t got a
    clue what money is or how it is created. Your application IS the money
    that you then gift to the bank. Learn what money is and you will soon
    see that you are all very very rich indeed and have NO debts at all.

    If you were to ask the bank to prove that they DID lend you
    something… you would make a much bigger step to getting debt free than
    saying no to trips or going out with friends etc.

    Have you ever asked yourself “If i’m borrowing some money, why does
    the bank only extend to me credit?” The very sad thing is that people
    don’t know the difference between money and credit. If you asked for
    apples and got oranges would you just accept that?

    If you simply stop paying “your debt” and let a debt collector buy
    the debt, you are instantly debt free and for free! The debt collector
    would have paid the debt off for you and the original creditor (the
    bank) will have discharged the debt… this means no more debt owed. You
    then just need to ask the debt collector to show you were you agreed to
    pay them for paying the debt off for you. Works every time!

    Think about it. If I paid all the debt off for every person who
    visits this site would those people be liable to me or not? Of course
    not, we never agreed that they would pay me back a single cent BEFORE I
    paid their debts for them.

    We should stop putting so much into the “credit score”. It is only a
    measure of how good you are at being fooled into thinking you owe money
    to somebody. The higher your credit score the more ignorant (without
    knowledge) you are in your financial matters. So if you need an
    apartment and your credit score is low… get a guarantor. Need a job
    and your credit score is low… find a job that employs you not your
    credit score.

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