Some people mistakenly believe that debt is no cause for concern – they can pay it off conveniently every time their repayments are due, and otherwise just forget it exists. Something like a student loan for instance will be little more than a a monthly payment around the cost of a mobile contract or a TV package and as many of these are means tested you should always be able to afford the repayments as they come through.
So why worry about paying back your debt at all? What’s the big deal when it comes to being in debt? Here we will look at precisely why you don’t want to be in debt and why you should get out of the situation as quickly as possible.
It Costs a Lot: Being in debt costs a lot of money and the longer you take to pay your debt off the more you will pay in total as you accrue more and more interest. This then means that if you pay your debt off now, although it might sting in the short term, you will actually be saving yourself a lot of money for the long haul.
You Might Leave Debt for Others: In some cases your debt can be passed on to others if you fail to pay it off before you die. It’s impossible to inherit debt unless you were a party to it when the loans were taken out in most cases – but for anyone who was a co-signer on your loan this is a problem. Likewise if you die before you pay off secured loans this could mean your property is re-possessed and not passed down through the family as you might wish.
It’s Bad for Your Credit Rating: Your credit rating directly effects your ability to pay back loans as demonstrated in the past. This then means that having a lot of debt will be reflected in your rating and you could struggle to take out mortgages or car loans, to get new credit cards or even to rent properties.
It’s a Risk: At the moment your debt is manageable and doesn’t pose a threat. The smart thing to do then is to pay it off now while you know you are financially able to deal with the consequences. Otherwise you may find that the debt mounts up from other sources and you end up in over your head. Don’t be complacent – deal with your debt before you wish you had done so sooner.
10 thoughts on “Why You Need to Get Out of Debt”
It is sad that some people really ask why you need to get out of debt. How can you even ask smth like that? It’s because YOU NEED TO BE FREE. Banks destroy our financial situations. First of all, all of you should know NOT to take a loan. If you did that, make sure you have enough money to pay back in time. And don’t ask why you need to get out of debt!
Being in debt is maybe the riskiest thing this century. This is why you need to get out of debt. And I mean immediately. When you want to buy something you can’t afford yet, if you have the chance, save money until you buy it. If you can’t save the money for it, then you should not take the loan. Are you in this situation? Well, this is another reason why you need to get out of debt.
I like the fact now that on my credit cards I see what it will take me to pay them off. Like how if I only pay the minimum it will take me so many years to pay it off. That really does put it into perspective. That was great thinking on someones part.
It does cost a lot to be in debt. Think of all the interest you are wasting. Does that every bother you? It really bothers me.
Every person in debt I know asks himself that question. Why you need to get out of debt? Well, first of all, you will feel a lot better. A lot of stress will disappear. And next, you can do a lot of things with those money you saved, instead of spending them on your debt.
When I was a young student, my dad explained me. Son, I am going to teach you why you need to get out of debt, he said. I had lent some money before that and he made it clear for me. So since I was a kid, I knew about it. If you are in debt, get rid of it immediately! And always avoid debts.
You can’t actually ask yourself why you need to get out of debt. It’s like stating the obvious. Being in debt means acting as a slave. And paying back more than you were given. This is why you need to get out of debt.
These are only a few of the reasons why you need to get out of debt. But you don’t need others. These are enough. Make sure you really really need a loan right now. It sometimes can be skipped.
I need to get out of debt for my own peace. I cannot stay calm thinking that I have something unpaid. I cannot believe there are people who think that debt isn’t a case for concern. Many times I struggle to not make debts at all. Only when I’m free, without no debt, then I could say I’m reconciled with myself.
You should get out of debt as soon as possible. These ore only a few things why you should get out of debt. I don’t think there are people who feel comfortable thinking they have debts. At least this is what I think. I’m not at all feeling good knowing that I have a debt.
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