Debt can be crippling to your finances and create a sense of weight on your shoulders that never seems to go away. Not only does debt hinder you from saving for your future, but it inhibits you from living with the freedom you deserve.
Your income is the most valuable wealth-building tool that you have. When you work on paying off debt, you are enabling your income to be used for a more fulfilling purpose.
Paying off debt is a great way to free up money in your budget to create more flexibility when it comes to trading your time for money. That is because you will have fewer monetary obligations to fulfill every month.
The two main factors that could affect your credit score while paying off debt are: 1. Credit utilization 2. Credit mix
Here are great examples of what you can do with the extra money that’s burning a hole in your pocket: 1. Build up an emergency fund 2. Invest in real estate 3. Start a business
When you’re paying off debt, you need to go about it the right way. That involves thinking about how your debt payoff strategy will affect your total cost of debt. The financially savvy way of paying off debt is the debt avalanche method.