Reason for Getting Out of Debt

Do you want to get out of debt but don't find the right reason? Well if you need reasons, I've give you some reasons to get out of debt and avoid borrowing in the future.

1) Everything that you buy becomes much more expensive Whenever you borrow to buy something, the total cost to you is made up of three distinct parts.

• The actual amount that is borrowed.
• The interest on the loan.
• These payments must be made from your taxed income – Let's say 30%.

2) Lack of Freedom Every time you borrow money you forfeit a piece of your life. It means that your lender owns a bit of you. They own the time that you take to earn the money to repay the debt every week or every month. Every pound of debt reduces the freedom that you have in your life.

3) Rows What’s the most common reason for rows between couples? Work, children, sex, the house, trivial matters? Wrong! The answer is money. Debt is the biggest cause of rows and relationship problems.

4) Stress You owe money that you no longer have. You have to repay it with interest. You have to work every hour available just to make ends meet. Then on top of all that worry, there’s the frustration of being permanently skint, despite the fact they you’ve never worked harder in your life.

5) Bankruptcy With all debt, there’s always the chance that it will spiral out of control. One debt can lead to another debt. After you’ve borrowed money once, it becomes incredibly easy to do it again, and again, and again!