Learning how to pay off debt is an important step in accomplishing financial success. Running away from debt collectors your entire life is no dream of anyone. Not only does living in debt cause you financial troubles, but it can also cause a lot of stress on someone physically. That is a lot of pressure to bear alone. The best way to not have to deal with this mess is not only to get out of debt as soon as possible, but avoid it.
Avoiding Debt is Possible
Avoiding debt is possible no matter what anyone says. While sometimes debt can come about because of unavoidable emergencies, it is easy for me to believe that debt can be avoided for the most part. A popular area of life that people go into debt is for college. Popular media have convinced us that it is okay to go into debt for this expense because it will increase our future income. If you have graduated from college and joined the working force, I would bet that you know this isn’t always the case. In fact, I strongly believe that going into debt for college is avoidable and encourage. I am just finishing up my grad school and will be able to graduate debt free. I accomplished the same feat for my undergraduate work as well without any significant help from my parents or full tuition scholarship. My summers were full of working and traveling, but I got through college debt free.
Reasons to Avoid Debt
If you are wondering why you should avoid debt, here are several reasons or benefits it offers you:
- Freedom: Have you ever wanted to do something but have found yourself committed to the regular expenses? Being in debt is the same way. While financing a big purchase may mean less money each month and spread out over a longer period of time, it also means that you are forced to pay that into the future. Instead of having the freedom to do what you want, you are bound to your debt.
- Interest: Do you know that you could be saving thousands of dollars if you merely planned ahead? Why pay the bank for money that you could save yourself. By merely postponing a big purchase until you have the money, you can save extra money on the interest you would pay.
- Compound Interest: Not only do you have the opportunity to save on the money that you would pay on your loans, but you can use the money that you are paying towards your debt to invest in your future. Having your money locked away in investments is a great way to build wealth. Before you know it, you are earning interest on your interest and you investments grow that much quicker.
- Lack of Concern: Have you ever been stressed out about making ends meet? If you are debt free, you don’t have this concern. In fact, avoiding debt can offer you a huge piece of mind.
These are just some of the many reasons that you should avoid debt. Don’t place a larger burden on yourself than is necessary. Start doing everything you can to avoid debt because it is worth it in the long run. If you avoid debt altogether, you will have a more credible voice to teach others how to be debt free.