Money is the number one cause of stress in North America and the same could be said for many nations across the world.
Debt makes up a large portion of financial stress and it’s important to know how much of a negative effect this is really having on our lives.
If people really understood how bad debt can be for their health and overall well-being then maybe more people would make an effort to hop on the debt-free movement.
Young millennials carry debt mostly through student loans and credit cards, this post will specifically highlight how getting rid of that debt will benefit your life.
Let’s get into 5 benefits of being debt-free.
#1 Less Stress
High amounts of debt can cause long-term stress, which is bad for your health.
“Young adults with high levels of debt report overall stress 12% higher than average.”
The feeling of guilt and shame are common emotions when it comes to money and this can cause tremendous amounts of stress.
Becoming debt-free lifts a huge weight off your shoulders, the feelings of being trapped and constantly running in circles disappear and then you can truly live your life without fears or worries about how much money you owe.
#2 Better Mental Health
In its most extreme form, debt can also cause suicidal tendencies and lack of sleep.
Relieving the pressure of constantly owing money can drastically improve your mental health.
Once you’re debt-free you can spend more of your time focused on things that bring you joy instead of worrying about your financial situation.
#3 Higher Self-Esteem
Being in debt can deteriorate your self-esteem. Especially now that we live in an era where celebrities and influencers are constantly sharing the best versions of their lives. This is a huge source of insecurity for a lot of young people.
It’s almost an instant feeling of confidence when you pay off your debt, you no longer have to worry about saying no to nights out, you can travel guilt-free and overall start living the best version of your life.
Living without debt makes it easier to say yes to things, makes shopping less stressful and gives you that boost of confidence that you need to keep going on your personal finance journey.
#4 Improve Credit Score
The less debt you have the better. Your credit history and credit utilization have a huge impact on your credit, by keeping your debt low and paying your bills on time you will see your credit score increase.
#5 More Free Income
When you pay off your debt you are essentially giving yourself a raise, the money you were once throwing at debt can now go into building your savings and investments!
Who doesn’t want some extra money every month to have fun with?
Once you’re debt-free you can now start putting that money towards things that actually make you happy and bring you fulfilment in life.
Whether you’re just getting started on your debt-free journey, thinking about it or you’re already on this journey just know that it’s okay to take it at a pace that works for you.
Even in the personal finance community, it can cause insecurity when you see people paying off 50K in debt in 1 year. Everyone’s journey is different so take it easy and enjoy the ride!
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