Just two years ago, the average American carried a whopping $92,727 in consumer debt, according to an Experian study. That debt could be from credit cards, a mortgage, student loans, or personal loans, or some variety wherein. While that’s an eye-popping figure, nearly everyone you know is in debt. Right?
Yet, there are people who live below their means, can financially handle any emergency … and have no debt. Zero. They don’t owe anyone, and they like it that way.
While you don’t run across debt-free people every day, you, too, can be among that number. That is, if you put in the work and adopt a certain mindset. With that in mind, here are the benefits of debt-free living – and more.
What are the Benefits of Living Debt Free
Certain debts, such as from student loans or buying a house, can ultimately prove beneficial to your life. However, if debts such as from credit cards start to pile up, you can feel overwhelmed. In that case, you may need to employ a financial strategy known as debt relief.
But in the main, it’s good to be debt free. Benefits include:
- More income availability. With no debt payments, you spend or save as you see fit.
- More of a safety net for emergencies. Because you have cash, there’s no need to pull out plastic or take out a loan that’s tied to your house or car
- A better credit score and interest rate. This comes from paying off your debt.
- You can retire earlier. You can use your extra money for future final objectives and perhaps retire earlier.
- Less stress and anxiety. The time you spent stressing can now be used to enjoy friends and family.
- Better mental and physical health. Stress can contribute to or cause conditions such as insomnia, pain, and hypertension. Or you can just feel run down. Becoming debt free and alleviate stress-induced problems.
- More confidence. It’s burdensome to have to hide your debt load from your friends. Paying off debts can give you more self-esteem as your pride grows about your finances.
- More productivity. It’s hard to focus on your work if you’re worried about money. When you are debt free your attention span improves.
- Improved relationships. Whether at home or on the job, your relationships will improve because you no longer are beset by finances-induced stress.
- Improved parenting or caregiving. Being debt free improves your mood and capacity to have fun and enjoy those you love.
What are the Traits of Debt-Free People?
People who are debt free tend to have certain characteristics. Perhaps such traits don’t come to you naturally. No problem – you can work on and develop them. Debt-free people are different in that:
- They don’t buy into norms. Society says we need credit cards, car payments, etc. Debt-free people are countercultural, even if they had to go through America’s top debt relief company, Freedom Debt Relief, to get there.
- They exercise restraint. They tend to think about purchases before taking the plunge, even if the item is on sale. They’re less given to impulse purchases.
- They’re generally confident. They don’t need to have a car note on a late-model car just to impress others. They’re not swayed by brand names. This means more money for attacking debts. As each debt is erased, their confidence level grows.
- They have no problem turning down outings or events. It’s hard to live debt free if you’re always agreeing to social opportunities. But debt-free people don’t mind saying no. They’re willing to make sacrifices.
- They don’t draw comparisons. Because they don’t have a “keep up with the Joneses” mentality, debt-free people don’t care if you have something they don’t. You have your own goals and objectives.
- They’re more generous. Because they have the cash, they can afford to enjoy some of it by giving it away, rather than hoarding it for themselves.
In summary, the benefits of debt-free living are manifold, as are the characteristics of debt-free people. Your chief takeaway should be that you, too, can achieve a debt-free state – IF you set your mind to it.