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25 Reasons To Get Out of Debt Today

By Erik Folgate

Some of you will go through your entire life being in debt. You’ll always pick up a car loan, always carry credit card debt, and you’ll always move up in house. My challenge to you is stop the debt cycle in your life. Stop the cycle of always being in debt. If you need some convincing, here are 50 reasons why you should get out of debt as quickly as possible.

  1. It will free up your household income
  2. More money to invest in your retirement accounts
  3. Less stress in your life
  4. No chance of becoming upside down on a loan
  5. Greatly reduces the risk in your life
  6. Helps improve and maintain healthy relationships with your spouse, family, and friends
  7. It puts you in a better position to give with abundance
  8. The feeling of owning a car or a house outright is awesome
  9. You will work harder at your career
  10. You will be more motivated to make more income
  11. You won’t feel like you’re running in a hamster wheel.
  12. It will free up your thoughts
  13. Improves your credit score, which could lower your insurance premiums
  14. Improves your credit score, which could help you land your dream job.
  15. Motivates you to work towards your dream career.
  16. Improves your marriage.
  17. Improves your health. Less stress equals a healthier body.
  18. It will free up more income to help you save for your children’s future
  19. Allows you to help friends and family get out of debt
  20. It will free up money to put towards the home improvements you’ve dreamed about
  21. You’ll be a happier person, and people will like you more.
  22. You can finally take control of your financial life
  23. More time and money to devote to your favorite hobby
  24. Unfortunate events won’t ruin your financial and personal life.
  25. You can teach your children how to stay debt free

I could come up with many more reasons, but 25 is good for now. Are you fed up with drowning in debt? My wife and I are fed up with it. We have paid off $10,000 in two years, and once she starts working and we have two incomes, we have a plan to pay off $50,000 in two years. We know that we can do it with diligence and motivation. We definitely have the motivation to be debt free, but we need to maintain diligence even when we’re tempted to use the money for other things. I want to hear from those of you who have recently decided you want to become debt free. I want to hear from those of you that have already become debt free and what the feeling was like when you paid off the last debt. Being debt free except the house counts as being debt free in my eyes. The ULTIMATE debt free feeling is payinig off a house, but that takes longer than a couple of years. Let’s start a revolution. Let’s our generation and generations below us to live debt free. Who’s with me?

Erik Folgate
Erik and his wife, Lindzee, live in Orlando, Florida with a baby boy on the way. Erik works as an account manager for a marketing company, and considers counseling friends, family and the readers of Money Crashers his personal ministry to others. Erik became passionate about personal finance and helping others make wise financial decisions after racking up over $20k in credit card and student loan debt within the first two years of college.

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  • grumpy

    When I owned a $200 car outright, I always worried about what would fail next, and whether the next failure would merely make the ride even worse than it already was, would cause a temporary (downtime) inconvenience, or be catastrophic. When I owned a $500 car (1989 Hyundai, first year base model) I felt like I was at or below the level of a Yugo. When I financed a 1991 Sentra, I felt like I was finally driving something resembling a decent car.

    And when I paid off the Sentra, I felt less motivated at work because I hated my crappy job and retirement of the debt meant I didn’t HAVE to work as hard and as long.

  • michael

    Can you explain #14? How does a higher credit score lead to your dream job?

  • Mike

    Debt really isn’t a bad thing, provided you are living within your means and can make the monthly payments without worry. It’s when debt exceeds your means that you have to worry.

  • Single Black Female

    You can do it! I love your 25 reasons and think they are great examples of why you should want to be debt free. Like yourself, I was in debt Erik. I owed the IRS $15,000, student loan $16,000 and about $15,000 in credit card debt. Making $22.00 per hour, I paid ALL my debt off in one year. I worked 16 hour days, cut back tremendously on dining, shopping, spa treatments, travelling etc. But as I got closer an closer to my accomplishing my goal I felt relieved. Was it easy? No. Were there days I wanted to give up? Yes. But I didn’t and neither should you. 2.9% of my take home salary is spent on Household expenses now, the rest I get to save. In 2014 I will pay off my mortgage principal. Stay focused and don’t get caught up in what other people think. You will be living stress free and enjoying life with your family.

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