Money Basics

Benefits of staying out of debt

Debt is not a bad thing. It is how people manage debt that gets them into trouble. There are several benefits of not getting too deep into debt.

• Debt can drain your cash. Once you free yourself of debt, chances are you will have more money to spend on things you want or enjoy without having to worry about interest payments.
  
  
• Mishandling debt can lead to a bad credit history. This can have a negative impact if you are applying for a job or attempting to obtain a home loan. Managing your debt wisely can put you in a good financial position when it comes to making major purchases.
  
  
• Being in debt can be stressful. It can strain relationships at home and could possibly affect your work. In essence, becoming debt free or paying down your debt could make life easier.