Resolution 2021: Pay down credit card debt!
Here are a couple of reasons to get your debt paid off now!
- Increase Financial Security When you spend your hard earned cash on debt payments, you could be starting a savings account or a retirement plan. Paying off your debt will be the first step in making your financially secure.
- Increase Your Credit Score Increasing your credit score means creditors trust you to pay your bills on time. Improving your credit score will get you the best rates to make life purchases like a home or a car
- Reduce Your Stress Having lots of bills to pay and keep track of can be overwhelming – you have to remember to pay your bills each month and on time and with more bills to pay, you’ll have less cash leftover to cover unexpected expenses.
- Own Your Assets when you take on a credit card, you are taking on a loan on items you purchase and paying interest on them. Did you ever consider that with credit card debt, you have a loan on the clothes you’re wearing?
- Start a Rainy Day Fund With less debt and fewer bills, you’ll have more cash each month. With more cash, you can start a rainy day fund for when your car needs a repair or when your hot water heater breaks. You’ll be able to use your rainy day fund to make these purchases rather than taking on debt to cover the bills
- Increase Future Earnings Having debt also more than likely means you’re also paying interest. Being able to pay cash for items means you’re actually payless for the items you’re buying. For example: buying a car with interest might mean you’re buying a car for $20,000 but with interest, you could be paying $25,000