Everyone has some kind of debt, right? Whether it’s store cards, car loans or even student debt, owing money is just part of being an adult. Even though we sometimes need to borrow money for some things, it doesn’t mean that we should just become complacent. The easy thing to do is to sit back and pay off the minimum amount each month, or continue to borrow and worry about it when the first repayment is due, however, this kind of attitude – is a sure-fire way to let your debts spiral out of control. Paying off your debts and loans quickly and sensibly is the best approach to borrowing money - not only is it good for your financial standing but for your credit score and any future plans you may have, like buying a house. The first thing you must do is take account of your current financial standing and all of your debts including the interest on them. Creditfix can help
you to understand your debts, what you have outstanding, how to prioritize your debts and get your finances back on track. If you’re worried about your money and what you owe, make sure you check them out! Here are some reasons why you should start paying off what you owe as soon as possible. Your mental health will improve
Money and mental health go hand in hand. And while you don't need millions in the bank to keep yourself happy, having a good relationship with your finances will certainly help you sleep better at night. Worrying about money puts a strain on everything, particularly relationships and our mental health. Anxiety, depression, even fear when the phone rings or when the mail arrives - if you fail to keep on top of your debts then your mental health will suffer. Taking some simple, positive steps to take back control of your family's budget
and start putting money into savings will give you the relief your need and make life much less daunting.
Photo by Karolina Grabowska Financial security
Would an unexpected bill be enough to tip your budget and finances over the edge? If you’re already in debt, then you may have nothing to put aside for such an event. Paying off what you owe, and taking better control of your budget means that you can build an emergency fund and handle the unexpected (and expensive) without plunging yourself into more debt, worry and frustration. It's incredibly important to always include money for savings each month when creating your budget to help provide that 'cushion' for you. I can't tell you how often I've been so grateful for it! It can even help avoid costly high interest loans for items like new appliances if yours break or if you car needs unexpected repairs. You can plan for your future
Saying goodbye to debts means that you can begin to plan and welcome your future. It may sounds difficult at first, but there are so many ways you can save money
and make room in your budget for paying off your loans. Whether that means you can save for a house down payment, a long awaited trip
, or even your retirement. Focusing on your debts now means that you'll have more time to focus on building your nest egg later. It just makes financial sense.
Photo by Burst You’ll have more money
It sounds counter-intuitive, but paying off all your debts or consolidating them, means that more of your money is yours each month
. When you’re not paying huge amounts of interest, then more of your money stays in your wallet. And paying less interest means you will pay less in the long run. In fact, if you can, it helps to pay extra towards loans each month to pay them off faster and for a lower overall out-of-pocket total.
Photo by Karolina Grabowska Reach out
Remember, if you’re struggling with your debts, reach out to a firm like Creditfix as soon as possible for advice. Navigating the financial world can be so confusing and there is no shame in asking for and seeking out help.