Let’s face it, we live in a consumption-driven society. Everywhere you look there’s something to want. Whether it’s sleek cars or cinema-quality TV sets, the latest and greatest is never far from view.
Unfortunately, the potential for debt comes right along with those things. What’s more, if your financial obligations get out of hand, the excitement turns into a nightmare of never-ending proportions. Instead of working to live, you’re living to work and the glow of all those shiny new things diminishes. Anyone who has been in the situation will tell you the benefits of beating bad debt start with a feeling of liberation.
- Freedom of Choice
If you don’t want to work, you don’t have to when you’re debt-free. You can also live wherever you want, without being concerned about being in commute range of a job you may or may not like. Most of all though, you’re freed of money problems. Your bills are limited to the bare necessities, which can typically be managed on a very meager income. Plus, the money you make over and above what you need to live can go into savings, creating even more security for the future—or giving you the ability to pay cash for the things you want, instead of going into debt to have them.
- Earlier Retirement
If you have a goal of achieving a certain dollar amount in savings and investments to fund your retirement, you’ll get there faster when your money is going toward those, rather than paying interest on a loan. This could be the difference between retiring in your 60s and your 80s.
- Asset Ownership
When your home has a mortgage, you’re renting it from the bank until it’s paid off. The same goes for a car with a loan or a lease agreement. These things are yours when you buy them outright until you decide to sell them to acquire something else. Nobody can take them from you because you have no financial obligations against them.
- Higher Living Standard
Buying things on credit gives you a false living standard. You feel good because you have nice things; however the price you’re paying reduces your standard of living in the long run. The more money you give away in interest payments, the less money you’ll have for your future when your earning years cease.
If you’re currently underwater, there are a number of ways you can get back to the surface. You can use the debt-snowball method of paying off obligations. This is a strategy by which you make minimum payments on your largest debt and use the rest of the money to pay off the smallest one first. You then repeat the process as you work your way up. Combine the payment you were making on the smaller bill to the payment you’re making on the next largest one and continue on until all of your debts are satisfied.
If things have progressed well past your ability to do work that way, can consider other methods such as consolidation loans, credit counseling or debt settlement. You’ll find a lot of organizations willing to help, but choose wisely. Some look after your interests better than others.
If debt settlement looks like your best option, a company like Freedom Debt Relief benefits you in many ways. They’ll analyze your debt, your situation and your goals to create a custom repayment program with the best chance for the fastest success possible. Best of all, they don’t charge you for doing so until a deal has been negotiated in your favor.
If you think getting a new car feels good, wait until you see how good it feels to get free of financial obligations. And, that’s just one of the many benefits of beating bad debt.