10 Reasons Why You Would Be Happier if You Were Debt Free

Is being debt free one of your goals?

It’s not easy to achieve debt-free status.

Especially if you are starting from a point where you owe a lot of people an awful lot of money.

If you need motivation during your quest to get all your bills paid off for good, keep in mind these ten reasons why you would be happier if you were debt free:

1. You’ll Have More Money

We all know the saying money can’t buy happiness, but neither can being broke. Not having any debt is probably going to put a lot more money in your pocket, and that’s something that makes plenty of people quite happy.

2. You Won’t Owe Anything to Anyone

Imagine not owing anyone a cent. How amazing would that be? Without any debt you can literally walk around your home basking in the glory of all the things you owe outright.

3. Setbacks Aren’t Such a Big Deal

If you have to visit the emergency room or you get laid off you probably won’t panic nearly as much as if you had a ton of debt obligations. Financial setbacks are annoying when you’re debt free, but they can be absolutely devastating when you’re riddled with debt.

4. Retirement Won’t be So Daunting

Retiring without any debt is certainly preferable to bringing a great deal of debt along with you into your golden years. Even if you are many years away from retiring, being debt free will make the impending experience less frightening.

5. It’s Less to Keep Track Of

Keeping up with a variety of bills can be time consuming and bothersome. Without a bunch of bills you won’t have to dedicate an evening to paying bills and sorting through statements. That makes life easier.

happy and debt free

6. You Teach Your Kids a Valuable Lesson

If you have children, having no debt is an amazing lesson to teach your kids. They’ll grow up knowing that not everyone spends their lives saddled in debt, and may follow your example when they become adults. Really, what makes parents happier than seeing their children succeed?

Related: Teaching Kids About Money [The Complete Guide]

7. You Have Money to Help Other People

With less debt you’ll probably have more money, and if sharing your wealth makes you happy then you’ll be in a great position to do so. Instead of sending money to credit cards and loan payments every month, you can give generously to whatever charitable organizations you want to support.

8. Achieving a Goal is Empowering

Setting a goal and achieving it can be a happy event. When you know that you have the stick-to-itiveness to pay off all your debt you will probably figure you can do just about anything you set your mind to.

9. One Less Stress-or

Life can be hectic enough. Without debt looming overhead you can deal with everything else life throws you more effectively because you have one less thing to worry about. Remember the lyrics to this song: Don’t worry, be happy.

10. You Can Use Your Money to Build Wealth Instead of Giving it to Debtors

When you’re not stuck in the debt payment cycle you can set your money to work for you. Invest, save, and do whatever it is you want to do with your money to build up some real capital. Watching your money grow exponentially is enough to make almost anyone happy.

Final Thoughts

Being debt free doesn’t guarantee eternal happiness, but it can certainly help. When you don’t have to worry about getting bills paid off, missing payments, and paying interest and fees you can concentrate on the other things in life that demand your attention.

Some people might make the claim that becoming debt free was a sort of “rebirth” for them because it changed everything.

Will you be happier when you’re debt free? You’re darn right you will! What are you waiting for?

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About Philip Taylor, CPA

Philip Taylor, aka "PT", is a CPA, blogger, podcaster, husband, and father of three. PT is also the founder and CEO of the personal finance industry conference and trade show, FinCon.

He created Part-Time Money® back in 2007 to share his advice on money, hold himself accountable (while paying off over $75k in debt), and to meet others passionate about moving toward financial independence.


    Speak Your Mind


  1. This is a great article. The stress factor is a big one. Financial stress lasts for a very long time until you fix it. Ive been there.

  2. great write up, Jonathan. thanks for sharing this motivating peice.

  3. Emily @ Taking Charge says

    I totally agree. Being debt free is so liberating for all of the above reasons — especially not owing anything to anyone. Owing money is like always having a big gorilla strapped to your back. It amazes me that some people keep living above their means and stay a part of that vicious cycle.

  4. Debt in a word is “slavery.” You are a slave to the people you owe.

    The sensation and peace of mind you experience the instant you have paid off your last debt cannot be put into words. Euphoria is as close as any word comes.