Living the high life comes with a big cost to most people. When you buy things like cars, recreational vehicles, clothes, and luxury items on credit, spending can rapidly spiral out of control and you may find yourself struggling to make your payments. It might suck for a while, but if you get out of debt, your life will improve more than you could ever imagine.
Your cash flow will skyrocket
By reducing monthly payments and eliminating credit card debt, you’ll see the numbers in your bank account start to rise much more quickly. Trust me, it’s exhilarating.
You’ll actually have a savings fund
Yes, that means if your brakes decide to crap out at the worst possible moment, you won’t have to borrow money or dip even further into debt. You can save for fun things like a vacation or a new bike or the video game system you’ve been pining for.
You’ll stop paying interest
You’ve wasted so much money on interest payments, it will disgust you to do the math. Between a mortgage, auto loan, and credit cards, you could be spending $300+ a month on interest alone. That’s gross.
You won’t need so much insurance
When you have money in the bank, you won’t feel so nervous about large expenses. You may be able to reduce your deductibles, move to a health insurance plan with a higher deductible but lower monthly payments, even getting rid of the insurance on your cell phone. With a sizable cash cushion, you won’t be scared into purchasing so much insurance.
You’ll live (relatively) stress-free
Without the heavy burden of debt hanging around you, you will be able to breathe easy. Imagine having no monthly credit payments (aside from perhaps a mortgage) and $15,000 in the bank. Seems like a dream, right? Paying off debt is hard work, but the rewards are endless.
Does this give you enough of a kick in the pants to get moving? Thanks to Narrow Bridge for the tips – do you have any other get-out-of-debt tricks you’d like to share? Leave ‘em here!
By Janelle Witting