Why get out of debt? Becoming debt-free is a struggle. It takes a lot of hard work and personal sacrifice to get out of debt. So why do it? Why go through the difficulty to get out of debt? There are 4 reasons I believe everyone should get out of debt. And STAY OUT OF IT!
Read this post if you want to find out how it feels to be debt free! If you want to know how my hubby and I paid off $166,000 of student loans, read these posts: The Debt Snowball, The Envelope System, How To Make A Budget.
Reasons To Get Out Of Debt
REASON 1: RESPONSIBILITY
Most of us are adults and are responsible for our lives and how we live them. We can no longer blame other people for most of the things that go wrong in our lives. And, we cannot blame other people for why we are still in debt. I knew what I was getting myself into by going to an expensive 4 year university. I got myself into 100k of debt. Therefore, it is my responsibility to pay back the money that I borrowed to attend school.
This goes for anything. If you borrow money to buy a car, a nice new purse, or pay for something you could not afford at the time, you have a duty to pay it back. The reason a lot of people choose to stay in debt is because of faulty thinking. As a society, we believe in instant gratification. We want everything now, even if we cannot afford it. People use credit cards for things they WANT but do not really NEED. So in order to get out of debt, we need to realize that we are responsible for our debt. But being responsible isn’t all that fun. So let’s go to reason 2.
REASON 2: FREEDOM
Debt makes you a slave. When I have loans, I am in bondage to the bank, the credit card companies, the loan company. Whoever I owe money, I become their slave. Most of my monthly income belongs to them. If I don’t pay them, they can come take my money or anything else they deem as valuable that I own. That brings so much stress! I did not realize how stressful it was to be in debt until I got out of it!
So, getting out of debt makes us free! We no longer get those bills in the mail. There is less worry every month about how we are going to make ends meet. Having no debt means, all the money you take home from each paycheck is yours to do with whatever you want. Oh what an amazing day it was when B and I became free of debt! We are now free to do whatever we want with our money! Finally, we are free to save for a house and a car! Our money no longer belongs to Wells Fargo, Sallie Mae or U.S. Bank. It is ours. We are now free to give it away if we want! Which brings me to reason number 3.
REASON 3: TO BECOME GENEROUS
When you have no more debt, and have made a budget, you are now free to be generous with your money! Before paying off our student loans, we were not free to be as generous as we would like. We had to think about where every penny goes. I couldn’t just go give someone $100 to help out, because I needed that money to pay loans. We could not give generously to our church because we didn’t have the extra money.
Just imagine with me if you had no more debt…. You might be able to be more generous with the gifts you give people at Christmas. Maybe you would be able to finally help a family member who is struggling to put food on the table. If you have no more debt, it frees up all of that money every month to go to your family or someone else in need. Imagine if every American no longer had credit card bills, car loans, student loans or any other kind of debt. Just imagine the people who have legitimate needs that we would be able to help! Imagine reason 4….
REASON 4: LIVE LIKE NO ONE ELSE
When we are debt-free, we can truly live like no one else! Like Dave Ramsey says, “Live [today] like no one else, so later you can live like no one else!” Basically that means we sacrifice now and people think we are crazy, so later, we can live like no one else. We become free, to save for retirement, buy a nicer car, buy a house, or be generous. It’s crazy to people, but we can stop saying no and start saying yes!
My grandparents are good examples of generous people. They are responsible with their money, and bought their house with cash. Even in retirement, their debt-free mindset allows them to be as generous as they would like. Since they just bought a new car, they decided to give their other car away for a cheap price to someone in need. They are always looking for people to take out to lunch and those who need some help. They are generous because they can be! Since they have been responsible with their money, they can live like no one else!
Just imagine being free from debt. Being free to do what you want with your money and be generous. I honestly cannot wait for the opportunities that will come to bless other people since we are out of bondage! Yay for being debt-free!
Do you have any other reasons to get out of debt?! I would love to know what motivated you to become debt free! Comment below!