Maybe you have tried to pay off debt before but failed due to lack of motivation. You may have started out with motivation, excited at the thought of becoming debt-free, but you hit a few snags along the way, become discouraged and lost the gumption to move forward with your plan.
What you need is concrete motivation in order to keep the momentum going in your quest to pay off your debt. You need a set of reasons why you are working so hard towards this goal. But maybe you don’t have any reasons, you are stumped as to why you should follow through with this goal.
Debt stands in the way of financial security mainly because it keeps you from making the most of your money. The cash you fork out for debt could be better utilized saving for a rainy day. Daisy Raouph, your financial advisor serving Pickering, offers you these reasons you should strive to be debt-free.
Avoiding High-Interest Rates
The average interest rate on a credit card is just over 14 percent, that adds up to a lot of money you dole out every year. And keep in mind that this is just an average, you could be paying more than that.
When you become debt free, you get to avoid paying interest and spend your money in ways that benefit you, not stuff the pockets of those in charge of credit card companies.
Saving money is a good thing to do. Unfortunately, when you are paying credit cards, loans and other debt, you aren’t saving a whole lot. In fact, statistics show that many households don’t have any saving at all.
And just what will you do with all of the money you save? Well, in all likelihood it will be used at a future date to make purchases or pay for services that will otherwise put you back into debt. That is, it could be used to pay for college for the kids or used for retirement.
Frees You Up To Make Investments
Here is an often overlooked but very powerful benefit of being debt free: It frees up money that can be used for investment opportunities.
When you don’t have to pay off debt, you can use that money to buy investment properties or make other investments that could make you a lot of money.
Lets You Make Lifestyle Changes
Since you are spending so much money making debt payment each month, you probably spend your weekends hanging around town trying not to spend too much money. But if you were debt-free, you could be spending your weekends traveling or doing the things you have always wanted to do.
If you have trouble sleeping at night from time to time, it could be because you have too much on your mind. For example, you could be worrying too much about your debt. Well, there is one way you can solve that problem and sleep better at night; by becoming debt-free.
If you want to take the first step to becoming debt-free, give Daisy Raouph a call.