Saturday, February 4

Why is it so damn important to get out of the debt ditch?

Millions of consumers enroll into a debt settlement program or a bill consolidation program to pay off their debts. However, a size able fraction of these consumers fail to continue with these programs because of lack of motivation. If you've multiple unmanageable bills and enrolled into a bill consolidation program, then it is important to stay motivated. However, you can stay motivated only when you're aware of the reasons why it is important to get rid of debt. Read along to know about why it is so damn important to get out of the debt ditch.

Why is it important to pay off your debts?

Here are some reasons behind the importance of repaying the outstanding bills.

1. Living a life without any anxiety: The creditors or the collectors will snatch your sleep until the debts are paid off. They don't care how you pay off the debts. They just want their money. They will call you every now and then for payments. They'll make you feel like a loser. Moreover, too many collection calls can increase your stress level. This can be injurious to your health

2. Safe guarding your credit: You love your credit score. Don't you? You try your best to protect it from all evils. However, too many unpaid credit card bills can make a serious damage to your credit score. Once you get debt free through a bill consolidation program or any other debt relief program, and start adding good information on your report, the credit score starts increasing.

3. Spending money without any guilt: You'll hardly have spare cash to make large purchases after entering into the debt cycle. You won't be able to purchase the items you want. You'll either have to give up your wish to buy those items or have to borrow money from friends. If you borrow more money, then you'll get into a complex debt trap. Keep it in mind that the debt cycle will end only when you've repaid the bills. Once the debts are repaid, you can easily buy whatever you want.

4. Avoiding wage garnishments: Creditors are shrewd business people. They want to get back their money at any cost. They can even file a civil suit against you if the debts remain unpaid for several months. If the court feels that the creditor is right, then the judge can issue a default judgment against you. In such circumstances, the creditor can impose a lien on your assets or garnish your wages.

 5. Paying less number of bills: You may dread the first week of every month as you've to pay lots of bills. You'll have to remember the amount, interest rate, due date, etc. of each and every bill. However, once you consolidate all your bills into a single monthly payment, you'll have to primarily remember about one bill only.

6. Teaching by an example: Children learn best from real life examples. If you don't want your children to get into debt problems in future, then you'll have to explain them the importance of getting debt free. They'll actually listen to your advice when you give your best shot to become debt free.

Lastly, if you're buried in debt, then it will be impossible for you to build your nest egg. You won't be able to save money for your retirement years. This implies that you may have to spend the golden years of your life in poverty and drudgery.

No comments:

Post a Comment