One of the worst things about being in debt is that it can become all-consuming. It's such a struggle that often the goals and visions you had for your life become lost as you simply try to keep your head above water.
But HOW do you get out of the seemingly endless cycle? Trying to get out of debt is a dilemma millions of Canadians struggle with. Business Insider reports Canadians owe $2.025 trillion in outstanding debt as of April. The good news is debt consolidation is one of the best methods used to successfully manage debt. Debt consolidation programs allow you to consolidate your unsecured debt, like credit cards and loans that don't require collateral, into one convenient monthly payment. Check out some of the reasons why debt consolidation can be an effective solution.
In this article, we will delve into the top 10 benefits of living a debt-free life.
1) Regain a sense of control
Few things make you feel as helpless as being at the mercy of circumstances you can't control. Living that lifestyle for a prolonged period of time can take a toll on you, both mentally and emotionally—after all, research shows there's a link between depression and debt. One of the main benefits of debt consolidation is the debt-free lifestyle can help you achieve a sense of control. Instead of letting your financial circumstances drive you, a debt-free life lets you control the direction of your life and future.
2) The ability to plan for the future
It's nearly impossible to save and plan for the future if you're constantly trying to dig out from a mountain of past debt. Living a debt-free life lets you take an honest look at what's coming up and plan appropriately. Maybe your goal is to save for retirement or a new business idea. Regardless, freeing up future capital from the burden of debt can help you make your future goals a reality.
3) No more worrying when the phone rings
Some people notice after they've become debt-free that they used to dread phone calls or opening the mail due to bill collectors. Reclaiming your finances through debt consolidation helps make those activities something to look forward to again. Knowing that it's not a bill collector or a past due notice waiting for you does wonders for your communication outlook. Here are some steps you can take when dealing with a debt collector.
4) Get back on track
No one plans on being in debt long-term — it just sort of happens over time. Being debt-free allows you to get back on track to doing whatever it was you had planned for your life. Attending school, having a wedding, starting a business, buying a house... all become possibilities when you’re no longer tied down by debt.
5) Making your credit work for YOU
Being in too much debt has an inevitable downward effect on your overall credit score. Sure, credit history plays a role, but no one is willing to lend to an overburdened prospect because you pose too much of a risk. Living a debt-free life allows you to choose more strategically the types and amounts of debt you carry in the future.
6) You’ll have fewer bills to pay
Sometimes just the number of different bills from debt can be overwhelming. Being debt-free brings that amount down to zero. If you choose to take on more debt later on in your life you can, whether it's to buy a house or start a new business, but being free from that financial obligation puts that choice back in your hands. Resolving excessive past burdens allows you to better position yourself for the future.
7) Motivate others to change spending habits
Living a debt-free life lets you be an ambassador for that lifestyle. Being someone who paid off your debts via debt consolidation allows you speak from a position of authority so you can help others—your kids, co-workers or relatives—learn from your mistakes and successes. Passing that information on can save the people close to you from future financial problems and everything else that comes with it.
8) Free up your thoughts
Take the time to honestly appraise how often you worry about money. How often do thoughts or fears about how you're going to pay bills or what you'll do if something unexpected occurs occupy your mind? Now imagine if that time was spent thinking about anything else. Living a debt-free life can literally free your mind for better and more productive thoughts.
9) Have healthier relationships
One of the things couples fight about most is money. Living a debt-free life can decrease or remove that strain from your relationships. It's amazing how much easier it is to have a healthy conversation about budget when you're not working through past debt. Debt consolidation, for many people, is their ticket back to regaining a healthy relationship with family and friends.
10) More time for fun stuff
The difference between living in debt and being debt-free is you don't have to feel guilty for spending money on your wants rather than needs. You no longer have to be concerned that the money should be going towards paying down a bill. An honest budget and a debt-free restart allows you to spend money where you want to, without feeling bad about it.
There are many reasons to seek and achieve a debt-free life. But in the end, it's up to you to make it happen by deciding to become debt-free and getting the right plan of action that will work for you. If you need help, you can book a free debt review with one of our certified credit counsellors by calling 1.800.267.2272. Hopefully, this list will motivate you to get started on your own journey to zero debt.