I have had people tell me that they will always be in debt so they are going to keep making monthly payments forever.
Well, that is not true, there are plenty of stories showing people who have paid off large amounts of debt.
I created a YouTube playlist of motivational debt free stories, click here to check it out.
Take a moment and total how much you are paying toward your debt each month (do not include your mortgage), now multiply it by 12.
That is a rough estimate of the total amount you pay each year toward your debt.
If you were able to keep the amount you pay towards debt each month think about what would you do with it.
For example, let’s say you pay $700 a month toward your debt.
That means you will pay approximately $8,400 of your after-tax income a year toward your debt.
1. More cash flow - Once you pay off your consumer debt you are no longer paying, based on the example above, $700 a month toward your debt.
That $700 provides you with more cash during the month so you are able to put additional money towards your goals and cross out some items on your bucket list.
It also affords you the opportunity to cash flow unexpected expenses and you will also have the ability to save and invest more which is another piece of ending the paycheck to paycheck lifestyle.
2. Option to jump at opportunities - Another great benefit of paying off your debt is not being held back by your debt.
I had the opportunity to get my Ph.D. for free in another state.
I was ready to make the move, I even traded in my SUV to get a cheaper car so I wouldn’t have so many expenses but when I stopped and looked at all of my debt I was not going to be able to continue paying my debt with the stipend they provided.
So I had to be an adult and walk away from the opportunity.
If I didn’t have a lot of debt I would have been able to take advantage of that opportunity.
3. Less stress about money - Have you ever been low on cash and credit and you’re just hoping nothing happens before your next payday?
Or have you ever had an unexpected expense pop up and now you’re stressed out because you don’t have it or it’s all you.
You react differently when you have money in your bank account.
Don't get me wrong, you are still not happy that you have to spend the money.
But you are thankful that you have it to pay and will not have that anxiety or tightness in your chest when you swipe your debit card.
What benefits are you looking forward to after paying off your debt?
