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Paying off debt requires a lot of hard work and motivation. For many, the ultimate goal when it comes to paying off debt is financial freedom. Beyond the accomplishment and confidence that comes with being debt free, there are several other benefits of getting rid of debt. We’re covering a few of the positive benefits of being debt free and sharing how the Debt Free Life program can help you get out of debt for good.
It’s no surprise that carrying debt can cause stress. A study from the University of Nottingham found that individuals who struggle to pay off debts or loans are more than twice as likely to experience mental health problems, including depression and anxiety. As you might expect, paying off debt can have positive effects on your mental state, and can help you reduce your stress level over time.
A 2017-study from Frontiers in Psychology references several studies showing that poverty – experienced in real life and in laboratory conditions – impaired people’s attention span, memory, and self-control. Working to eliminate debt can improve your sense of self-control, knowing that you have the ability to change your financial circumstances.
The Federal Reserve Bank of Atlanta published a recent study on how debt affects death rates. The study found that as people’s credit rating improved, their risk of death decreased. A 100 point increase in credit risk (Equifax’s equivalent of the FICO score) reduced the overall risk of death by 4.38%. Reducing your debt may not necessarily have a direct impact on your longevity, but this study is a nice reminder that eliminating debt has the potential to improve your life in many ways.
Credit card debt can have an especially negative impact on your credit score. When your credit card balance gets close to reaching the limit on your credit line, your score will be affected quickly. Paying off credit card debt is a good place to start your debt free journey, and this momentum can help you start paying down other loans when you’ve eliminated your credit card debt.
If you’re looking for a way to pay off debt for good with a customized plan to fit your budget, Debt Free Life can help. Debt Free Life is a program that uses the cash value of a permanent life insurance policy to pay off debts. Instead of borrowing from a bank and paying interest, you can use funds from within your policy. The program is customized for your specific budget and debts, including credit card debt, mortgages, student loans and auto loans.
Ready to Live a Debt Free Life?