Living an easy life with debt consolidation
In America, living a debt free life is something which is almost impossible.
However, to make life a little bit more enjoyable, you can opt for debt consolidation so that you can focus or concentrate on one debt to service.
Due to the fact that getting credit is easy use and it’s the way most people purchase things, it makes it easy to avoid all kind of debts completely.
Being free from debt does not mean your financial situation is all good.
However, it is a very satisfying feeling to know that you do have any debt to pay.
If you are able to live a life that is debt free you will be so happy that you will not want to go back to a life full of debt.
Realistically eliminating debt completely from our lives is not easy or even possible but there are ways to make the debt much easier to deal with and also making our lives a whole lot better.
How your life can be improved when your debts are consolidated
Having so many debts scattered all around you can be quite overwhelming and somewhat stressful.
Feeling some sort of improvement life comes from the fact that you do not stress over so many debts which you used to have due to the fact that your debts have now been consolidated.
With that said there are forms of improvements in your life that can be attributed to your finances. These are:
Living with less anxiety due to your finances:
Debt stress is real as your name. Same way the thought of your debts can be so real it can cause you to stress so much.
The stress comes in when you do not know how to pay off your debts because of some circumstances you find yourself.
Making you think about it all the time causing you anxiety and stress all the time especially when you know you will face the penalties if you do not pay.
It easily can become a health issue for you if you keep thinking and stressing about your debts.
This can easily affect your life as well as the lives of the people around you.
A research conducted on parents who have debts revealed that they are more prone to have kids who have behavioral problems.
This is due to the fact that the stress that these parents go through automatically affects the way they go about their parental duties which in turn affects the child negatively.
Negative traits exhibited by these children of parents going through stress due to their debts include aggressiveness, depression, etc.
In the reverse, when you are debt free or have consolidated your debt and have more control over your finances, you feel more relaxed with no anxiety.
With no debt, you are free to work less
Anybody who works does so to make money. This is a world wide fact that everyone is used to.
To work different shifts so that you can make extra money can mean either you need the extra cash to buy some things you need or you need the extra cash to pay off your debts.
If not these two basic reasons it will ok to work and earn just about enough to take care of your basic needs.
Not being able to pay back your loans will accrue a lot of interest on your loans and may even affect your credit history.
The money that will accrue as interest on your debts could easily have been placed in your savings account.
Whiles your creditors are getting richer you are getting poorer because you need to pay more to them.
Being able to consolidate your loans will help you have more time for the consolidated loan, helping you to pay your loans as and when agreed with your creditor.
When you are able to sort your debt out by consolidating them, you get to know how much you will need to pay at the end of each month and therefore you work just enough to pay your debts and meet your needs.
You can retire early
Retiring early from active service only means one thing and that is you have enough retirement money.
You can have enough retirement money when you have been able to save enough.
This can happen when you are bale to pay off all your debts and this can be made easy when you consolidate your loans so you can focus on paying your loan from one creditor.
Consolidated loans keeps you focused and helps you pay off your debts in a more organized manner.
If you have plans of retiring early you can put the extra cash you get into your retirement fund.
This will grow as the years go by and also get interest on your fund which will increase and make you money enough to be able to retire when you have enough to live on.
Not paying off your debts completely before retiring will not be an option especially if you want to enjoy your retirement period.
The creditors will sponge on your retirement money to get their monies back and that will leave you in a tight spot since you will be too old to go back to work.
Note, living a debt free life can possibly ruin your credit score
In as much as living a debt free life is comfortable and you have your peace of mind, it can be devastating to your credit score.
This is because for your credit score to go up to the required number you will need to have an active credit life.
Without it your credit history will be dormant which will affect your credit score in the end.
With that said you don’t need to be indebted to any creditor because of your credit score.
To do this you can use your credit card wisely and properly so that you still have a credit life even after being ‘debt free’.
And you can only do this by using your credit card to purchase stuff you need and paying back at the end of the month.
This will give your credit score the boost it needs so that you can go for a loan anytime you urgently need it and at good interest rates too.