Ambition and motivation are everything in life. You need them in every aspect, every step of your life, even while repaying your debts. There must be something that triggers you to achieve the long-drawn financial freedom. People fail, not because the process of paying back debts is difficult. No doubt it is, but people mostly fail because they lack the spark. Most of us fail midway of the process, not because the goal is unattainable, but because we lose motivation. Do you know, in June 2019, the consumer debt in the USA increased from $4.1 trillion to 4.3? With that number of data, becoming debt free seems like a tough task to do but it’s not.
Here we are with a list that will give you 6 solid reasons pay back your debts as fast as you can:
The importance of being financially secure
Financial security is crucial and should be on the priority list of every adult. Everyone wants to avail the health benefits post-retirement life; want their children to have the best of education, and other facilities. And all of these are nothing but dreams that will remain unfulfilled provided you don’t take care of your financial security. The burden of debts causes a serious threat to your financial security. The unpaid bills and piled up debts take a toll on your fiscal health, which makes it the topmost reason why you need to repay your loans ASAP!
You want to do what you want to do
When you are drowning with debts, you don’t have the luxury to spend on things we love to do. This leads to frustration and in the end, we employ the desired activities irrespective of the debts (which gives rise to more debts!) In other words, we simply fall in the vicious cycle or in a debt trap. Things become worse and start to go out of our hands. To be able to do things or buy stuff that your heart desires without feeling guilty about it is enough motivation for you to repay your debt at the earliest.
You want to get rid of the debt-stress
Let’s be honest, who likes being contacted by debt collectors? So if you are getting contacted by any global debt collection agency, you must start paying your debt today.
Stress has proved to be very dangerous, even life-taking in extreme conditions. While debts can prove to be a savior in crisis, it also invites unnecessary stress. You know, debts do not only come with interest and a liability to pay them back. They come with a lot of added stress with them. And not just a little stress, but with a constant bug which is the root cause for a lot of health issues. You must have heard of the saying, “health is wealth.” Let me modify it for you, ‘health before wealth’. So, aim for a debt-free life if you want to stay away from those migraines and other painful health hazards.
You want a healthy credit score
When your bank account reflects the innumerable number of debts, your credit score takes a toll. What is a credit score? A credit score basically represents a number showing the risk the lender will be taking when he decides to lend the money to you that is the borrower. Naturally, if the risk is high, you are less likely to get sanctioned for a loan. Same with banks. Now, let me talk about its importance. Say if someday you are in dire need of a loan, if you possess a poor credit score, there are high chances you would fail to acquire it.
You want to OWN your assets
Often banks ask for a mortgage of the same value of the loan or higher to secure the repayment. In worst cases, if you fail to repay in time, the assets thus mortgaged will be the bank’s possession. The thing is when you owe a debt, your house and other assets do not belong to you but to your lender. However, once you have paid back all your debts, all your assets are your own to cherish lifelong. I am sure you don’t want the fear of losing your house constantly striking your head, so make a repayment schedule and get to work.
You want to set a good example for your kids
Now when you have faced the struggle of the debt trap, you will never want the same for your children. Therefore, it is our duty to teach inculcate good money habits in our little ones. And to lead by example, that is, not to take debts yourself, or repay them on time should be your ultimate goal.
Before wrapping up here’s a final statement – An outstanding bill never helped or benefitted anyone in their life. Keep motivating yourself and scratch out your repayment schedule and pay back your debts before you run out of time. All the best!