You may not really have realized it yet but do let us
tell you that there are a few disadvantages of being debt-free. That a healthy
economy is largely reliant on debt may not really be inspiration enough for you
to not become debt-free and achieve the much talked about financialfreedom but let us tell you that there are other reasons that
may lead you to think otherwise. Kindly keep reading on in order to find out
why exactly being 100% debt-free is never advisable.
Do
you know that debt is important for economy?
you know that debt is important for economy?
Yes. Let us start off with what we have already
mentioned—healthy economies do rely on debts. The primarily consumer-driven
economy thrives on the prospect of people’s spending. Yes, it’s true that a
high amount of debt can result in the downfall of an economy but do let us tell
you that in some cases even a high percentage of savings is held responsible
for sluggish economic growth. While everyone would aim for a high-income driven
economic status, it’s true that it’s the credit card debts that actually go on
to fuel maximum economic growth.
mentioned—healthy economies do rely on debts. The primarily consumer-driven
economy thrives on the prospect of people’s spending. Yes, it’s true that a
high amount of debt can result in the downfall of an economy but do let us tell
you that in some cases even a high percentage of savings is held responsible
for sluggish economic growth. While everyone would aim for a high-income driven
economic status, it’s true that it’s the credit card debts that actually go on
to fuel maximum economic growth.
How
can a debt-free life lead to indecision?
can a debt-free life lead to indecision?
The chances of indecision also increase. Yes. As has been
pointed out by many financial experts out there, let us tell you that becoming
100% debt free also has its own vagaries. It makes it difficult for you to make
prompt financial decisions. Where exactly should you put your money? Earlier,
when you had debt, it was way easier for you to determine what exactly you
would do with any extra amount of money earned by you. You knew that the
dollars thus earned would be spent on paying off your debts. However, with no
debt to deal with you are now confused as to whether the extra money should go
to the savings account or to pay your bills or for that matter to leisure
expenses.
pointed out by many financial experts out there, let us tell you that becoming
100% debt free also has its own vagaries. It makes it difficult for you to make
prompt financial decisions. Where exactly should you put your money? Earlier,
when you had debt, it was way easier for you to determine what exactly you
would do with any extra amount of money earned by you. You knew that the
dollars thus earned would be spent on paying off your debts. However, with no
debt to deal with you are now confused as to whether the extra money should go
to the savings account or to pay your bills or for that matter to leisure
expenses.
So, that does intend to become a little stressful for
you!
you!
Are
the market returns higher than rates of interest?
the market returns higher than rates of interest?
There is every chance of the market returns being higher
than that of rates of interest. If the stockmarket is experiencing an upward trend and the interest rates
are very low, then you being debt-free is not going to help you in any which
way. For instance, with some money yet to be paid, you can pay off some money
and use the remaining in stock market and secure good returns. This is the
reason why even the wealthiest of people actually end up mortgaging their
homes.
than that of rates of interest. If the stockmarket is experiencing an upward trend and the interest rates
are very low, then you being debt-free is not going to help you in any which
way. For instance, with some money yet to be paid, you can pay off some money
and use the remaining in stock market and secure good returns. This is the
reason why even the wealthiest of people actually end up mortgaging their
homes.
What’s
the myth all about?
the myth all about?
Last but not the least it is absolutely a fallacy to
think that financial disagreements happen owing to debt. Mostly, couples have
different financial priorities altogether – that might be related to savings
and spending as well. Trouble starts brewing because they fail to communicate
their priorities to each other.
think that financial disagreements happen owing to debt. Mostly, couples have
different financial priorities altogether – that might be related to savings
and spending as well. Trouble starts brewing because they fail to communicate
their priorities to each other.
That
debt free life is a bed of roses is a myth and that has been amply proved by
the points mentioned above.
debt free life is a bed of roses is a myth and that has been amply proved by
the points mentioned above.
What's up, yup this piece of writing is really pleasant
and I have learned lot of things from it regarding blogging.
thanks.