Being debt-free is important for those who want to decide how their money is spend instead of giving the added income in the form of interest to banks and loan companies. Imagine how it would feel to be 100% free from all debt.
Being debt-free gives you financial security
Financial Security is when you feel stable and safe in terms of your money. One major drawback of debt is that you are always thinking about where to get your next dollar from and who to pay it to first.
Your credit score is a “grade” assigned to you based on how fast and reliably you have paid off loans in the past. If you have a high credit score, you will be more likely to get loans at great rates.Your credit score affects your purchasing power for big purchases of “acceptable debt.”
Time is one of the best tools we have for acquiring wealth. The quicker you are done with debt payments, the faster you will be able to save money. When you become debt-free, you gain control over how that money is used!
Not owing money gives you an increased ability to save and build wealth
Studies have shown that people who are in debt tend to be more stressed and are generally more prone to mental health issues. It’s no wonder. When you’re in debt there is a constant cloud of worry over all aspects of your life.