Should I Try to be Free of Debt?

There are some people that will recommend that we try to repay our debt. This can make us feel like perhaps we should look carefully at the money that we owe and think about whether we should be trying harder to repay it. It is worth thinking about whether it will be useful for you.


The longer that we are in debt, the more we tend to be paying out. Unless we are lucky to have some interest free credit, we will always be paying out interest while we are in debt. If we repay the debt early then we will be able to stop paying out that interest. However, some lenders will charge you a fee if you want to start overpaying or repay it in full. This can be just a small admin fee but it could be a huge amount of money and so you will need to check. Some may just not allow you to over pay at all. It is normally loans that have a fixed interest rate that will tie you in to staying with them until the end of the fixed rate term and will not allow you to repay the loan or make extra payments during this time. However, there may be other lenders that will be much more flexible and you will need to check with your lender to find out whether they will charge. Then you can work out whether you will save money by paying off your debt early. You may have several different loans and so check for all of them and you will be able to work out which ones will be the right ones to repay.


It is worth thinking about those repayments. If you find them stressful and find it difficult to find the money to pay them, then being free of the debt will be really useful. You will have extra money available to pay for other things, which means that you will no longer have to worry about them. However, you will have to find the money for those repayments and the extra payments on top. This can be tricky for some but there are various options that you can consider. For example, it could be worth seeing you have any savings and thinking about whether it is worth using those to repay the debt. Although you might make money from your savings, because you will get interest on them, you will probably find that the loan will be costing you more money than the interest and so you will be better off using the money to repay some of it. You may also need to find other ways to make some extra money to repay the loans. This could include things like seeing if you can pay less for items by comparing prices, buying less luxury items, selling things you no longer need and finding some extra work. There are not easy, but they can make a difference, even if you just make some small changes, so it is worth having a think about what you might be able to do to help.


It can be stressful having a debt and therefore paying it off early could be beneficial. However, sometimes the stress of trying to pay it off early is higher. If you are working harder and longer, spending a lot less and doing other things to try to repay it, it could feel really hard and you might feel tired and lacking in energy as a result. You need to make sure that you get a balance and do what works for you and your stress levels. Some people may find that knowing they are working towards repaying their debts makes them feel great and lowers their stress despite that fact that they are working harder. You will need to balance things in the right for you and how you feel about it all.

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