10 Reasons Getting Out Of Debt Is Worth It

debt reduction

When it comes to reducing your debt, there are a lot of good reasons to pay off debt beyond the obvious. The benefits of becoming debt free are numerous and have to potential to improve a number of areas of your life, although there are some debt free myths as well. Understanding how becoming debt free can positively influence your future can be a motivating factor to help you tackle the debts that you have. Here are ten reasons that getting out of debt is well worth the effort:

Credit Score

Your credit score is one of the most important pieces in your financial portfolio. It helps you apply for loans and credit cards, and effects many of the larger financial transaction you make. If you’re in debt, your credit score is probably lower than it should be and it’s probably limiting your spending habits or life decisions. Getting out of debt won’t miraculously cure your credit score, but it will allow you to works towards achieving a better score.

Retirement Savings

No matter what age you may be, saving for your retirement is crucial. Chances are that if you are in debt, you’re currently using all your spare money to pay off your debt instead of saving some of it for your retirement. by getting out of debt, you can start saving for your retirement which will help ensure that you don’t need to struggle financially later in life.

Financial Emergencies

Many people in debt don’t put extra money aside to use in case of an emergency. If you’re paying down debt, you probably don’t have any saved to use for unexpected emergencies like medical expenses or home maintenance. This is unfortunate and can potentially lead to even more debt, which is something you want to avoid. Being able to have that extra money to use if you really need to is another great reason to get out of debt.


You should also take the steps needed to pull yourself out of debt because you don’t know how secure the future will be. What if you lose your job? What if the economy plummets even further? What if your house or apartment is destroyed? You need to be prepared for any possible future outcome, and swimming in debt doesn’t allow you to plan for possible crises. Once you pay off your debt, you’ll be able to start saving money and will be able to plan for a secure future.

Future Investments

When you’re in debt, it’s hard to plan for the future. Things like buying a car, going on vacation, or paying for college are always tentative because you don’t know if you’ll ever be able to pay for them. Debt controls your life and your choices. When you’re able to get out of debt, you’ll be able to better plan for future investments.


Most people are aware of the high interest rates that are attached to debt. Sometimes it’s hard to pay off an item or loan because you’re always chipping away at the interest instead of the principal balance. Interest payments are what send people even further into debt. Most credit cards or loans have high interest rates, especially for people who are already in debt. Interest is just more wasted money.

More Money

Once you get out of debt, you’ll have more money to spend on other important items in your life. Having more money may seem like an obvious reason for getting out of debt, but it’s still an important one to consider. Are you barely scraping by now? Just imagine what it’ll be like when you don’t have to spend hundreds or thousands of dollars each month paying off debt. You can finally consider putting money toward the other areas of your life that you are forced to put aside while you’re in debt.


Being is debt can seriously affect your mental health and is one of the hidden costs of debt. Many people in debt feel pressured, anxious, and stressed on a daily basis. The level of stress is probably worse if you have debt collectors harassing you non-stop. While getting out of debt is important for financial reasons, it’s also important for mental health reasons. Not having to pay down debt will help alleviate a lot of stress from your daily life. It will be one less thing to worry about each day.

Others Are Affected

Unfortunately, when you’re in debt, you’re not the only one suffering. Your family, friends, and other loved ones suffer with you. Debt impacts almost every aspect of your life. You might not be able to let your children join a sport of club. You might have to limit the household spending. You might not be able to go out with friends as much. Getting out of debt is not only beneficial to your wellbeing, but it’s also beneficial to those around you.


As shown throughout this list, being in debt severely limits the choices you’re able to make on a daily basis. You might not be able to move even though you desperately want to. You might hate your job, but need to keep it because it’s the only thing helping you pay down your debt. Regardless of what the issue is, your choices revolve around your debt. Once you pay off your debt, you have so much more freedom. Your choices will no longer be influenced by your debt.

(Photo courtesy of lemonjenny)

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8 Responses to 10 Reasons Getting Out Of Debt Is Worth It

  1. michael says:

    This is really a no-brainer. There are so many advantages to being out of debt that most people who have been in debt and then get out wonder how they ever let themselves get into debt in the first place. I must also agree that getting out of debt helps with many aspects of life beyond the financial burden. Stress is a huge factor that most people don’t realize how much it is affecting them when they are in debt, but it instantly becomes clear once the debt is gone.

  2. jenny says:

    Seriously? Are there really any bad reasons to get out of debt?

  3. timeout says:

    There are certain situations when debt can be good, but your point is well taken when talking about credit card debt. Almost everybody would be better off without the current debt that they have.

  4. dean says:

    Stress is a huge one. I don’t think most people realize how much stress even beyond what they think they are enduring comes from being in debt. And stress can cause all types of other physical problems and health issues. I think my number one reason for getting out of debt would be the peace of mind of not having the debt.

  5. Marcia says:

    I have lived to regret getting into debt. I have never regretted getting any bill paid off, whether big or small!

  6. leslie says:

    I’m still working on this, so I don’t know what the feeling will be exactly like, but I can’t wait to experience it!

  7. Bankruptcy clinic says:

    Being in debt has certainly become more acceptable today than it was say 30 years ago with credit cards and loans being easily accessible nowadays. Personally i couldnt live with debt knowing that a chunk of my income is used to pay the interest each month

  8. Robert says:

    Back in 1973, my wife got a job at Bank of America as a teller. A few months later we got a BoA CC…with a limit $500. For the next 35 years we lived with ever increasing levels of credit card debt. She died 5 years ago. Three years ago, I managed to become debt free, except for my mortgage. I now have enough money in the bank to pay off the mortgage, but I want to have about $30k left in my account for emergencies when I actually pay off my home. That will take me about another year. That is my ONLY debt load. It is SO nice to be able to pay everything off when due, and still put a couple of thousand a month away. How do I do it??? Very long term planning. I’m retired from the military, I’m retired from a second career….both with defined-benefits retirements. As a widower I can claim my wife’s SS benefits at 66 (avoiding the earnings test), and claim my SS at 70 with maximum benefits. I expect to have between $300K and $500K in the bank, a long paid off home and $50k+ coming in as my annual income.

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