4 Reasons Why Getting Out Of Debt Should Be Your Main Priority

by Bojan M. Business consultant

There is almost nothing more terrifying than wondering how you’re going to survive a drastic life change, especially if it will require a significant income investment that you don’t have. For many people, debt makes changes like this nearly impossible and furthers the cycle of taking on debt to avoid sinking under the weight of financial hardships.

If the turmoil debt creates hasn’t convinced you, here are 5 reasons why getting out of debt should be your main focus before taking on new projects.

Career stagnation

Starting a business when you’re in debt is about as easy as starting a bonfire when it’s windy and you have no kindling. Every time you think you’ve managed to make it possible, the flame sputters out. This can happen from any number of things, but financial hardship is one of the main reasons many businesses are unable to get off the ground.

It’s also one of the reasons many people stay in a job they hate instead of embarking on a career that fascinates them.

78% of full-time workers currently live paycheck to paycheck, and 71% of workers have some form of debt. Couple that with the fact that the average debt amount is more than $37,000 and you can see why a job with a steady paycheck can seem preferable to a job you enjoy.

Unfortunately, statistics show that 85% of people worldwide actually hate their jobs, and it’s having drastic effects on people’s well-being.

Emotional turmoil

Like a job you hate, living with debt can have a significant impact on your emotional health. The seemingly never-ending payments make people in debt twice as likely to experience issues like depression, anxiety, and anger.

Although there are ways to decrease your payments on student loans and even have some of them forgiven, private loans don’t have the same options. Luckily, there are some things you can do to manage private loans and the toll they have on your well-being.

Researching the best options for your particular loans is a necessary step to decreasing that emotional turmoil. The longer you’re in debt, the more severe it becomes. That’s why it’s important to make getting out of debt your main priority.

Destruction of relationships

Living in debt often has massive negative impacts on relationships. The increase in stress can result in poorer communication, increased blame and mistrust, increased conflict, and eventually, the end of a relationship.

In fact, about 60% of divorcees say financial issues played a role in the end of their relationships. And in the relationships where finances were a major factor, most people blame their spouse’s debt and spending habits.

Risk

One of the biggest reasons why getting out of debt should be your main focus is the toll it takes on your finances.

Anything can happen to anyone at any time, and it’s best to be prepared for unexpected changes in your living situation. Debt makes it nearly impossible to do that, and in many instances, makes it so you become stuck in a spiral of paying off unexpected bills by taking on more debt because debt prevented you from saving.

Focus on debt first

No matter how much debt you’re in, paying it off should be your first priority. Doing so can have significant effects on your happiness, your health, your future, and your relationships. Through it all, it’s important for you to remember to have hope. Debt CAN be paid off, and you make it happen. Just take it slow, remember to breathe, and research all your options for loan forgiveness and refinancing. Do that, and you’ll be well on your way to living the debt-free life you always dreamed of.