Overcoming debt can be a challenge, which is why prioritising it and treating it like an emergency is the smart thing to do. The sooner you can get rid of your debt, the sooner you can be on the path to freedom. Let’s have a look at some of the benefits of quick debt repayment below.  

Interest Doesn’t Come Cheap

Every debt accrues interest. The longer it takes to pay off debt, the greater the interest will be, making the debt far more expensive in the long run. This is particularly bad in the case of high-interest debts such as credit card debt or things like payday loans. 

However, if you treat debt like an emergency and prioritise paying it off as quickly as possible, your interest costs could be significantly reduced, saving you a lot of money in the long run.

If you think about it this way, every rand you pay towards interest is money that you could have otherwise been using to build up wealth and achieve other financial goals.

Your Credit Score Will Thank You

Paying off your debts with urgency will lead to a much better credit rating and, as a result, greater financial freedom in the future. 

The lower your credit score is, the harder it will be to qualify for loans in the future, and the more interest you will have to pay on future loans.

Quick debt repayment will improve your standing and your credit score, which can lead to lower interest rates on future loans and easier approvals. 

In addition, some landlords and employers will check your credit score as part of the application process. Where applicants have poor credit scores, their applications might be rejected. 

As such, a poor credit score can get in the way of securing housing or employment opportunities. 

Therefore, treating debt like an emergency and prioritising its repayment can help you significantly mitigate the negative effects on your credit score and help you achieve greater financial freedom.

Goodbye Financial Stress

The psychological burden that debt places upon a person can take a toll on their emotional well-being. The stress and anxiety that this constant worrying causes can be detrimental to one’s health. 

Feeling overwhelmed and experiencing guilt and shame about your financial situation only makes matters worse, which can spill over into other areas of your life, affecting your relationships, job performance, and physical health. 

However, if you take proactive steps to ensure that your debt is paid off as quickly as possible, the psychological burden can be alleviated, and you can gain some sense of control once more. This will boost your confidence and help you feel more empowered and positive about your future.

Zero Debt aspires to help indebted individuals regain control over their finances and become debt-free. Take your first step to becoming debt-free when you contact us today.