9 Reasons to Get Aggressive With Your Debt Busting

There are hundreds of reasons to get aggressive when it comes to paying down your debt. Some of these reasons are unique to individuals and their particular financial circumstances, but most cross the boundaries of personal situations to find common ground among those who owe money. While debt, in certain contexts, is not necessarily a bad thing, you don’t want it restricting or altering the way you live. That’s one of the most important aspects of living debt free. Once you’re out from under the thumb of creditors, you can begin to make decisions in regards to the ways you put your spare income to use. Without the albatross of debt hanging around your neck, you can truly begin to experience the energizing effects and confidence that comes with financial freedom.

So if you aren’t already debt free, here are nine reasons to get serious about clearing your debts.

1. A Great Investment
In many economic situations, paying down debt is one of the best financial moves you can make. With most credit card balances carrying interest rates well into the double digits, and home and car loans typically ranging anywhere from five to ten percent, it can be difficult to find investment vehicles offering returns anywhere near these rates. Even with claims of long-term stock market investments returning an average of ten percent, it’s a rare bird these days to find an investment anywhere close to that average. Therefore, taking care of high interest debt with spare cash can get you the biggest bang for your buck.

2. Save Money by Paying
By reducing the amount of debt you’re paying interest on, you reduce the amount of interest you pay over time, in turn saving you money. The amount you save can add up significantly even over a short period of time, and every dollar you aren’t paying to a creditor is a dollar you are saving for yourself.

3. Make Managing Finances Easier
As your debt load eases, you’ll likely realize that managing your finances becomes easier as well. Rather than having to rob Peter to pay Paul, make decisions on which bills to pay now and which to leave for later, and scrimping by, paycheck to paycheck, you’ll hopefully have the resources to make ends meet with some change to spare.

4. A Wider Choice of Options
Once you’ve begun climbing from beneath the weighty rock of debt, you’ll suddenly find yourself faced with a variety of options regarding your future financial freedom. With money in your pocket, you may decide to begin investing, sock away cash for a rainy day, take that vacation you’ve been dreaming of or building wealth for your future – even retirement!

5. Reduce Stress
The ease of dealing with your finances and the broader scope of investment options will tend to reduce the amount of stress you felt from previous financial burdens. Financial stress can take a toll on your physical health, mental well-being, and personal life. The peace of mind acquired by being debt free can transform your life, leaving you noticeably changed, whether it’s through increased confidence, a better attitude, a more positive outlook on the world, or just being happier overall.

6. Living Freely
Not only can lack of debt decrease stress in your life, but without the burden of owing someone else money, you might be more willing to explore your dreams. Once you’ve mastered financial security, it can led to a feeling of freedom that enables you to try new things you’ve never had the opportunity to attempt before due to the restrictions of debt. A new job, a different career altogether, moving to a new place, or starting a business and being your own boss, suddenly appear as feasible options, where as before they seemed like only distant fantasies.

7. Helping Others
Once you have your own financial affairs in order, then you can begin to help those around you. By helping yourself, in turn you will be helping others, either directly or indirectly. Decreasing or eliminating debt allows you to help family, friends, charities, etc. and you will be setting an example for those same people to follow. By decreasing your debts, you not only help yourself, but indirectly you help those who must face the consequences of companies raising interest rates and fees due to written off accounts.

8. Family Security
While no one likes to ponder the possibility of a sudden or unforeseen accident, the chance is there. Wouldn’t it make you feel better knowing you won’t leave your family in debt, or better yet, that you’ll be leaving them with a financial cushion to fall back upon without you and your income there? Even if you aren’t married or don’t have children, leaving debt behind for a parent or sibling to deal with can be an issue they could certainly live without.

9. Moving Ahead
Finally, with debt out of the way, you can get on with planning the rest of your life. While being strapped with debt isn’t the only pothole you’ll encounter in the road called life, it is one whose effects can be avoided or at least minimized. Limiting debt will help you keep your eyes on the road and awake at the wheel while navigating the path to financial freedom.

About the author
Kris is a blogger who writes about managing personal debt and making money for an Australian price comparison site called Money Compare that offers a range of online saving accounts with comparatively high interest rates.  You can also subscribe to the RSS blog feed.