For most of us, debt is a necessary part of life. It’s the only way we can afford big-ticket items such as a home. Unfortunately, many of us get too attached to using debt to obtain things we want (but may not actually need). So, how bad is this, really? Well, studies have shown that too much debt can affect our financial health, our mental and physical health and our relationship with our partner and with others. In short, it’s best to minimize or even eliminate debt. In this article, we’ll take a closer look at some of the reasons for eliminating debt.
Improve Financial Health
Less debt can improve our financial health in a number of ways. For starters, lower debt frees up money that can be used for other things. We can save for retirement or college. We can save for a dream vacation. We can save for an emergency and a rainy-day fund. Beyond that, less debt can raise our credit rating which lowers the cost of borrowing. So, less debt really does improve our financial health.
Help Your Mental and Physical Health
Less debt can actually lower the stress in our lives and that’s a very good thing. Lower stress can reduce anxiety and help us feel positive about life. As stress goes down, our energy goes up which makes it possible to be our best self. So, when we’re not stressed out, we feel better about ourselves and life in general. And that’s a very good thing. You’ve probably read about the mind-body connection – how one affects the other. It’s no surprise then that we’re better off with less stress. Reduced stress strengthens our immune system and that can keep us healthy. Lower stress can lower our blood pressure which is good for our cardiovascular system. So, less debt can reduce stress which can improve both our mental and physical health.
Strengthen Relationships
Less debt can help you feel relaxed. Your relationships will be smoother – including with your partner and your kids. This will reduce problems at work. And that’s got to be good. In terms of your partner, money troubles are a primary issue cited in many divorces. And who wants to hurt their own kids? It goes without saying that it’s probably not a good idea to antagonize your boss either. So, for all these reasons, life will be better and relationships will be smoother when you have a feeling of well-being.
Naturally, everyone’s situation is different, but some of the things we’ve discussed are pretty common. I’ve written before about dealing with debt, about reasons to eliminate credit card debt and about lowering your mortgage. I suggest you read over these articles and if you’d like to discuss your own situation, we can discuss it in a no-charge, no-obligation initial meeting. Please visit our website or give us a call at 970.419.8212 to set up an in-person or virtual meeting.
This article is for informational purposes only. This website does not provide tax or investment advice, nor is it an offer or solicitation of any kind to buy or sell any investment products. Please consult your tax or investment advisor for specific advice.