In many ways, we’ve become a society that has accepted debt as simply a part of life. Consumer debt numbers are on the rise again, and although there are many people working toward financial freedom, there are many more that simply don’t understand why it’s important that they pay offoff their debt now. Yes, NOW. Today. Or sooner if possible. Why is it so important that you pay your debt off as soon as possible? There are many reasons, but today we’ll discuss three important reasons that you should pay off debt now, rather than later.
Pay off Debt Now to Avoid Future Uncertainties
A job layoff. An opportunity to travel. The zombie apocalypse. There are a million and one things that could happen. One of the major factors that contributed to the Great Depression being as devastating as it was was the fact that people had, over the previous decade, gotten comfortable with having mortgage and other debt. For many of the prior decades, debt was taboo, but in the roaring twenties, people started deciding that debt was a way to a better life now.
This mindset resulted in record-breaking foreclosure rates when the market crashed and the jobs sector declined. Think of how many people might have been able to continue to own their homes had they worked to pay off those mortgages as soon as possible – or even paid in cash – when they bought their homes.
The point is that we don’t always know what the future will bring. If you had an opportunity to take a job with a much lower salary but a much higher ROJ (return on joy) could you do it, or would you be forced to stay in the job you hated because you had debt payments? Being debt free protects you from being unprepared for future uncertainties.
Pay off Debt Now to Avoid Slavery
While the prospect of debtor’s prison is an old memory in most countries (although I’ve read that many think it has the potential to return, even here in the U.S.) debt still makes people slaves: slaves to the 9 to 5, slaves to their employer’s vacation schedule, slave to their bosses’ demands and slaves to the companies that they owe money to. Free yourself from the bondage of slavery to debt and pay off your debt now.
Pay off Debt to Improve the Quality of Life
While money certainly isn’t everything, the lack of it brings an inordinate amount of stress into people’s lives. Money problems are a main cause of divorce, and of the stress that brings on insomnia, heart attacks and a host of other maladies. You deserve a better quality of life than to be a victim of the stress and pain that a large amount of debt brings on. Choose to improve the quality of your life by choosing to pay off debt now.
There’s an old Dave Ramsey saying that goes “The grass under your feet really does feel different when the house you own is debt free.” I believe that’s true. That’s why we’re living a life of frugality now so that we can put every extra dime we make toward paying off debt. It’s worth the effort to have a more peaceful, non-enslaved life, don’t you think?
What is your reason for paying off debt now?
Refinance Your Student Loans or Credit Card Debt
With the average credit card interest rate around 15%, this could save you a ton of money over the long haul. SoFi will refinance your credit card debt to as low as 5.99% so that you can pay your debt off even faster. Use this link to get $100 cash back if you get approved. They also refinance student loans to as low as 2.355% APR.