5 great reasons to get out of debt

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.

Posted by in Living with debt