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The Positive Effects of Paying Debt Off

Debt sucks. You work hard for your money and watching it go to someone else is no fun. The only thing worse than debt is when you’re in debt and not in control of it. I’ve been there once and I never want to go back. I had just graduated and got married and had yet to face the reality that was (mostly my) debt. My husband brought a small amount into the marriage but by comparison to me, peanuts.

We were making the minimum payments but never came up with a plan to pay it off, we were incredibly stressed out. To add to it all we now had a baby on the way and I was about to go on maternity leave (with significant reduced income). We came up with a plan and I’m happy to say we’re making great progress. Along the way there have been many amazing side effects from paying our debt off.

Emotional Well Being

There is an indescribable feeling that comes with having full control over your money. When you finally know how much is coming in and going out, is an amazingly peaceful feeling. The anxiety goes away. Though it’s never fun sitting down for that first time to calculate debt owing, it’s necessary and brings a total calm with it when you finally know. As you start paying your debt down it just feels good, an accomplishment that you can see as you log into your accounts.

You Have More of Your Money

As your debt is paid off, more of your money is actually yours. Now that we paid off one of our large loans, we can finally work on saving to buy a second car that we desperately need. We’re still working on our remaining debts but we have the flexibility of taking care of something that our family needs as well, and it feels amazing.

You Appreciate What You Have

When you’re not in a situation to drop a wad of cash on new clothes for example, you appreciate what you have much more. You become resourceful too. There were times we may have needed something but many times we made do without whatever it was. Though we have never embarked on a deliberate no-spend challenge, we have lived these last few years really only buying things we literally need, there have been very few wants. Even once the debt is gone, are we have more disposable income, I know our appreciation for things (including our money), will stay. We will forever be conscious consumers, never a bad quality.

Being in debt can be down right terrifying and paying it off is required. It isn’t all bad though, there are many positive effects that come when you pay your debts off that can be hard to imagine when you’re at the beginning but ask anyone who’s already started, or already succeeded and they will confirm that facing your debts will be one of the best decisions you ever make.

What was the best thing that came from paying you debt off?

Comments

  1. I love the flexibility that you have. When you pay off a debt, that’s a payment whose money is ‘free’ and while I always advocate being responsible (paying off another debt if you have more is always a sound strategy), the truth is that there are often other doors that could be opened. Maybe now you can retire…or pursue a career change that would have otherwise been too risky.

    Debt freedom comes in many different ways!

  2. Paying off my debt was definitely the best thing I’ve ever done for my anxiety levels. I used to be so damn stressed all of the time. Stressed about losing my job, my husband losing his job, totalling the car, getting hurt. All of these things would’ve meant our finances went off the rails because our debt load was so high that even the slightest interruption in our money would result in a spiral.

    Now that my debt is paid off, that anxiety has finally subsided, although I have to admit it took thousands of dollars in savings before I felt truly secure.

    • I hav the same feeling, being debt free is one of the best thing that can happen. I too felt lots of stress in debt and was only rested when my emergency fund was fully funded. I still kept my good habits and my second job, thought I only do 60 hrs/week where I used to burn a good 90 hrs/week when I was in debt and while funding my emergency fund.

  3. Paying off debt made it possible for me to quit my job to work from home. It’s given us a lot of flexibility and we love it.

  4. I couldn’t agree more about the “emotional well being” factor. When I was deeply in debt I was a bag of nerves, petrified of any brown envelopes that came through the door. Getting rid of my debt didn’t just free up extra money (meaning “surprise” bills were far less of a worry) but it meant not being hounded by creditors any more.

    It'[s fair to say I now sleep much easier, and feel about six inches taller than I did when I was weighed down by debt.

  5. Well, my husband’s unemployment was about to run out shortly after we finally paid it all off. So that was a HUGE load off our minds!

  6. I always pay off my debt because I hate dealing with stress and it is somewhat like I can’t focus well on things I work on when I know I am in debt.

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