With average debt per person in the US up to $52,940, debt from a range of sources is often considered standard fare. Because of this, most of us accept the situation without rushing to clear our names, stretching to only minimum repayments, and often borrowing more without question.
Unfortunately, it’s this casual approach to repayments that’s resulted in snowballing debt that too often follows borrowers to the grave. This is bad not just for our financial health, but also for the individuals who stand to inherit our estates and debts. In circumstances of high outstanding debt, even just clearing the legal payments of probate in these instances can require the help of a company that offers trust loans to beneficiaries, meaning that, really, the only thing such individuals pass on is more debt. This isn’t good news for anyone, and it further points to the need to proactively address debt during life. Debt payment plans as outlined by experts like Dave Ramsey are the best way to do that, and we’re here to prove it with a few key reasons why your finances could benefit from your taking steps to finally find yourself debt-free.
Benefit 1 — Reducing interest
Interest is the sting in the tail of any money you borrow, and it’s quite literally wasted money. With even a month or more of hesitation possibly adding hundreds to what you owe overall, clearing your debt faster is the only way to overcome this, ultimately meaning that you halve the money you pay, while still making sure that you only ever part with cash you can afford to lose in the moment.
Benefit 2 — Putting a light at the end of the tunnel
By providing you with a debt end date (no matter how far away that might be,) a repayment plan can help you to shake the shroud of debt, and imagine a life when half of your income doesn’t go towards money you’ve already spent. This can provide a fantastic boost for your money mentality, making it far less likely that you’ll take on further debts, and also ensuring that you think wisely about how you’re spending your debt payments moving forward.
Benefit 3 — Making it easier to budget
If your debt is out of control, the chances are that you dedicate any spare cash towards this goal. By taking time on a decent debt repayment plan that pushes your finances as much as you feel comfortable with, you ensure that you’re better able to see precisely how much cash you have to spare. You also ensure that it’s far more likely you’ll put that spare money towards an emergency fund, instead of a debt pit that swallows it up and stops you from ever enjoying its benefits.
No one ever said that clearing your debt would be easy, but with benefits like these up for grabs, it’s definitely worth the effort. Simply take the time to speak with an expert, or find a debt repayment plan that sings to you, and unshackle your spending at last.
(Disclaimer: This content is a partnered post. This material is provided as news and general information. It should not be construed as an endorsement of any investment service. The opinions expressed are the personal views and experience of the author, and no recommendation is made.)