Can getting out of debt and living debt-free improve more than just your financial outlook?
Research has consistently shown that getting out of debt and living debt-free does far more than just improve your financial outlook. It boosts overall happiness and gives you a sense of control over your life. But why is that?
As we all strive to find happiness, here are five benefits on happiness of paying personal debt.
1. Reduced Stress & Improved Mental Health
One benefit is that you will experience reduced stress and improved mental health as you payoff your personal debt. Being in debt can cause a lot of emotional anguish and anxiety, so as you pay off your debt, you will feel a sense of relief and accomplishment. This will give you a sense of control of your finances.
2. More Discretionary Income
Another benefit is the increased amount of discretionary income that you will have. Discretionary income is money that can be used for activities such as eating out, going on vacations and other leisure activities that bring happiness. As you pay off your debt, you will have more money available to do the things that you enjoy, and will no longer feel guilty enjoying life's small luxuries.
3. Improved Credit Score
Paying off personal debt can also lead to an improved credit score. Having a good credit score is important for many reasons, such as when you are seeking a loan for a car or a home. This improved credit score can help you secure the loan you need and make you feel more secure.
4. More Savings
As you pay off personal debt, you can start to save more money. With a cushion of savings, you can feel less burdened by the small and large expenses that come up throughout life. That sense of security allows for an additional sense of freedom, giving you the flexibility to pursue the goals or interests that bring you joy.
5. Increased Sense of Accomplishment
Finally, as you pay off your debt, you will have a sense of accomplishment knowing that you have taken control of your finances and have reached a financial goal. This feeling of accomplishment can help you feel happier and more content.
Overall, paying off personal debt can have a variety of benefits on your overall happiness. By reducing stress, improving your credit score, having discretionary income, saving money and feeling a sense of accomplishment, you will improve your overall level of happiness.