Most people who are deeply in debt dream of the day when they are completely debt free. Ironically, people who live debt free lives often wish they could whip out a credit card to make a special purchase for a loved one, or to go on a much deserved vacation. As you can see, there are pros and cons to living debt free; read on to learn more.
The good-
*No more credit payments. Finally! You do not have to kiss away over half of your income to pay credit card bills and/or loans. It can seem like an uphill battle just trying to make the mandatory monthly credit card payments, let alone pay it off completely. Now that you are out from under that dark cloud, you can breathe easy when the bills come in each month.
*No vehicle payments. No more cringing when you send off the monthly payment for that great vehicle. The truth is that vehicle payments can absolutely and quickly kill a paycheck. Then you have to worry about paying the mandatory full coverage insurance on that vehicle that does not belong to you yet. Now that you do not have to panic about those high dollar payments, you can rest easier at night.
*No more stressful creditor calls. This really is a huge relief to anyone who becomes debt free. Bad things happen to good people; loss of employment, illness and surprise expenses can pop up out of thin air, but creditors do not care about you, just your money. They call during dinner, they call you at work (and that can cause a whole new set of problems!) and they even call you on Sundays. Now that you are debt free, you can finally stop dreading when the phone rings.
*No more stress. It is very stressful to be in debt, whether it is small debt or…well you get the idea. Constantly worrying about how to pay bills can cause strain in personal relationships, loss of sleep and even a loss of appetite. You get cranky, short tempered and even possibly suffer with bouts of depression. When you become debt free, all that heavy baggage is lifted from your shoulders and you can actually smile and be happier.
The bad-
*Forced to live within your means. It can be quite an adjustment to have to pass up good deals at stores or not buy name brand products anymore. It makes a huge difference in spending habits when you have to pay cash for everything. No more buying the latest and greatest electronic gadgets or fashions or keeping up with your friends and neighbors.
*No new vehicles. Unless you make huge paychecks, and now that you are debt free, you will probably not be buying a new vehicle every two to three years anymore. When you have finally been able to save enough to buy a different car, then you may be stuck driving a tiny economy car for the next ten years; (note: different, not new).
*No more big purchases. A lot of people get into a little bit of trouble when they make a major purchase like a new flat screen TV or laptop/desktop computer. You do not have to worry about that anymore because now that you are debt free, you are not making any large purchases anymore, ever. No more whipping out the credit card to cover Christmas gifts or vacations either.
It is definitely a good thing to be debt free, at least in some ways. It is good to be able to sleep at night, good to finally be able to be in a good mood and nice to know that creditors will no longer call and harass you. On the flip side, now you have to pay cash for everything and if you do not have enough cash, you cannot buy it.