6 Benefits of Living Without Debt

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6 Benefits of Living Without Debt

Did you know that the burden of debt affects not only your finances but your health as well? Well, owing someone or the bank money gives you stress that can have adverse implications for your health. Debt can be overwhelming, especially when it spirals out of control. Sometimes, when the debt is too big, you lack the motivation to clear it.

In case you are not yet in debt, please try not to borrow. However, if you are already in debt, make a comprehensive debt repayment plan. We have compiled a list of benefits of being debt-free to motivate you to either pay what you owe or continue being debtless.

Reduced Stress and Anxiety

No doubt, debt makes you anxious. You feel anxious when a payment is due. Every time your phone rings, you think it is the debtor calling and feel a sense of relief when you find out it’s not them. Such anxiety is not good for your health. Being debt-free reduces finance related stress, hence helping you live a healthier life.


Having some cash in the account gives you a sense of security. You feel prepared for emergencies and worry less about the fluctuation in prices of items. However, it is impossible to save any money when you are in debt. Your debtors will put pressure on you and you would eventually withdraw every coin you saved. Repaying your debt allows you to save for the future without fuss.


You cannot feel financially secure when you owe people and institutions money. They keep reminding you, ensuring you spend most of the money you earn to repay them. This affects your ability to save and takes away your sense of financial security. Also, you get a better credit score when you have little or no debt at all. It gives you a sense of security since you know that you can borrow should an emergency occur.

Increased Sense of Freedom

When debt does not dominate your budget, you have the freedom to spend the money that you earn on items that you want. A debt-free life gives you a sense of freedom since there are no creditors to compel you to spend your money to repay them.

Financial Discipline

Avoiding debt is a form of financial discipline that you need to master for you to have better control of your finances. Living debt-free requires you to exercise control over your appetite for borrowed money. This way, you will learn how to live within your earning and savings.

Early Retirement

Debt keeps you working for as long as it is necessary to repay it. However, when you do not have any obligation, you can invest and save what you earn. This allows you to retire early since you will have enough savings and investments to sustain you.


Going debt-free is one of the most important financial decisions you can ever make. The decision imparts financial discipline in you. It allows you to save and invest for early retirement, feel financially secure, and have the freedom to spend your money as you want. Also, going debt-free reduces stress and anxiety, thereby making you live a healthier life.