Below are my tips so that you can get rid of your debt today and not feel stuck because of it:
Gen Y Finances: 2017 could be most successful year in your life!
1. You’re probably wasting a lot of money on interest.
If you have debt, then you most likely are sending some money to interest. Unless your debt is at 0%, then your debt is not free. Have you ever stopped to see exactly how much of your money was going towards interest?
I’m going to assume that it is TOO MUCH!
2. Debt can lead to stress.
This is no surprise. Debt can lead to stress. If you cannot afford your monthly bills and your debt just seems to be piling up on you, you might fee like there is no escape. Getting rid of your debt is really the only way to get rid of this stress that you are feeling.
3. Debt can lead to more debt.
If you are not paying off your debt balance each month, then interest fees and late charges may be building up on your debt balance each month. This may make the $50 sweater turn into $500 easily if you only pay the minimum payment each month on your debt.
I have a friend who is trying to eliminate $3,000 in credit card debt. While it’s not an extremely large number, he has told me that he can only pay around $200 a month towards it. This means that interest is continuing to ballon out of control. He feels like his credit card debt is not going down, and that’s because even though he is paying $200 a month, most of it is going towards interest and not the principal.
4. You can increase your credit score.
I know that some people think that debt is good for your credit score, but I don’t believe that. You can increase your credit score by paying off your debt in full each month.
Your credit score is important because it can lead to lower interest rates. Yes, I know that is more debt, but if you want a mortgage, then a lower interest rate is what you will want.
5. You’ll have more money for other things in life.
Once you eliminate your debt, you will have money for other things in life. You might even be able to work less and have a better work-life balance if you eliminate debt, and who wouldn’t want that?
Do you want to get rid of your debt? Why or why not?