Debt has the ultimate power to take over your entire life from where you stay to what you acquire. When debt is cleared or paid off, the umpteen benefits go well beyond the bank. As a host of psychological perks do take place, from a well-restored self-esteem leading towards financial empowerment. Considering the ways debt payment can help return complete balance to your mind and body.
1. Less stress and improved health
It comes as a no shocker that owing a large sum of money does cause psychological strain, however, did you ever know that it is observed as one of the most stress-inducing life events?
It is certain that stress has a negative impact on our body. Stress is one of the key drivers related to cardiovascular disease, allergies, diabetes (and) gastrointestinal disorders. That is exactly the reason why paying off debt can result in universal physical healing.
2. Emotional distress controlled
Paying off debt is definitely more than just a numbers game; it is an act of completely breaking free from all the difficult and laborious past experiences. Debt is often associated with rough events such as a divorce or a reckless phase in life which is highly painful. When you eventually cut off the debt from your life, you are likely to experience emotional liberation!
Please understand that ongoing financial stress does translate into chronic stress, leading to depression, anxiety, high blood pressure, back pain, and stomach ulcers. The point is that high-stress levels cause cortisol release, which impacts the steady health of all organs, which includes the brain as well! So, paying off your debt removes the fear and stress associated with it.
3. Free to pursue other goals
When you are in debt, it can feel like your life’s on hold! Your life dreams inclusive of getting married, starting a business, having a baby all seem impossible to pursue when your financial life is in disorder. When you pay off the debt, you experience so much more freedom. It is not just about the money, but about how the money can get in the way of life’s other goals.
4. Increased self-confidence
Debt carries a negative stigma and can weaken one’s self-esteem to the core. Real financial stress does eat a person’s soul that is very different than other parts of our lives. In fact, the very shame associated with debt can drive people to mask their hardship in unhealthy ways.
For instance: you do have a nice house and other the great things, but behind the scenes, the financial walls are crumbling and collapsing. Once the debt is paid off, your self-confidence can make up for a fast reversal. Some individuals do share their complete debt stories out of a renewed and revived sense of confidence! It is empowering to be on the other side.
5. Strengthens you to avoid slipping back into debt
In some cases, the debt payoff can strengthen and mould your resolve and grit to stay financially solvent. Yet the probability of this chance depends on the very manner in which you paid your debt.
Consider this if you worked hard to steadily dwindle your debt, you likely have practiced discipline to keep your finances in check going forward.
To keep yourself from returning to the bad habits that got you into debt, keeping a tight grip on your finances is the utmost suggestion. It is very important to keep a vigilant track record of where your money is going once your monthly income does increase. Lifestyle slowdown and default debt cycles can be detrimental and injurious to having a healthy and secure financial future.
6. Improved relationships
Money is the biggest challenge in a marital relationship when the couple is worried about clearing the debt. The astounding relief that comes from resolving financial difficulties has the immense power to improve relationships once being bogged down by money troubles.
A marriage that has survived debt payoff without the casualties of lost respect or bitterness will likely grow stronger, and the partners will have a greater ability to communicate honestly.
7. You can spend money with ease of mind
Once you have felt the relief of debt payoff, your feelings between money and happiness can certainly change. Purchasing a designer dress out of your purchasing capacity may bring you immense short-term joy. Yet the happiness that you will experience from a dinner with friends or weekend getaway will be more fruitful in the long run!
8. You can think of other financial pursuits
After you have put your last debt payment behind you, it is not uncommon to experience a new set of financial temptations. Quite often, after paying off debt, people tend to gravitate and lean towards taking on more debt, or they will simply and also unconsciously spend the extra money that’s available to them.
To fight off the urge to spend beyond your means, do set aside the same monthly amount you owed during debt payoff into a high-yield savings account or taxable brokerage account. Instead of paying interest to a bank or financial institution, begin growing assets from the retirement or a future purchase.
It can feel hard to talk about your money problems. And if you have had a bad experience somewhere in the past, you might feel as if there’s no point in trying again. But there are lots of places you could turn to. Please note: debt payoff can be a very long, tedious journey, but the psychological rewards of doing so will only benefit you in the long run.
About the Author:
Trishna Patnaik is a BSc (in life sciences) and MBA (in marketing) by qualification but an artist by choice. Previously a corporate professional, she realised that she wanted to do something more meaningful. She found her true calling in her passion, painting. Trishna is now a full-time professional painter based in Mumbai, as well as an art therapist and healer.