Debt Elimination and You

In the current economic climate that we live in, many people live as though debt was an ordinary part of life. Some people may even say that debt is useful to have! It is true, there are very few people that live completely debt free. Because of this, many scratch their heads when we talk about debt elimination.

Why is debt elimination so important?

1) Debt limits your finances. People who are in debt spend most of their earned money paying those debts.

What does that look like? Well, when payday rolls around, a good chunk of their hard earned money goes to paying off their debts. After those things are paid, the amount of money left for them to live on is very limited. Because of that, they rely on using credit cards and loans to meet their other needs. Essentially, they are trading old debt for new debt.

Living in such a manner is a never ending cycle! It only gets worse as the price of living skyrockets. Many who have great jobs and high salaries often times do not get to fully reap the benefits of their hard work. Debt elimination can help to end that cycle! It can ensure that you can enjoy the full benefits of your hard-earned money.

Interest

People who are in that cycle can do their very best to not acquire new debts. No matter how hard they try, though, if they have old debt, they will always have to deal with the interest on the debt. “The principle hurts, but it’s the interest that will kill you.” Whenever you “borrow” money from an institution, you have to pay interest back to that institution for the convenience. Over time, that interest piled up. There have even been cases where the cost of interest has grown larger than the debt itself!

What causes increases in interest? Simply put, time. The longer it takes you to pay your debt back the more interest you will incur. Debt elimination will help you to stop this growth before it becomes monstrous. You surely don’t want to spend your entire life working to pay off a convenience.

2) Debt limits your abilities – Whenever you are in debt, you find that you aren’t really at the top of your game.

Why do people have to work? To earn money! People work because there is always that reward at the end of the fight. Payday! But what if you are in debt? What are you working for? To pay off your liabilities. This means that the rewards of your work really aren’t for you, but for the institution that you borrowed from.

Thinking like this limits your ability to work! When you are working to pay off debts, you will find that you are less motivated. After all, you are working for money that you’ve already spent! This gives the potential for your work to deteriorate and in worse case scenario, cause you to lose your job.

Eliminating your debt can help you get back on track. Your motivation to work will be restored knowing it isn’t in vain. It will also help you to set goals for your and your families future. Debt elimination will surely change your life.