5 Great Reasons to Have Less Debt

I’m no stranger to unwanted debt. I’m currently working on paying off some debt I’ve had since college. I’m embarrassed to tell you how long ago that was. 🙂 Paying off debt can be a long and challenging process, I realize. I often stop to remind myself what it will be like when I achieve my goal of getting rid of my unwanted debt. Here are a few good reasons you might be happier if you were in less debt:

1. Less Hassle – Think about it. For every debt you get rid of, you rid yourself of a monthly statement to open and review, a bill payment to schedule and make, and an online account to log into and check. Less debt means less to do. I think we’d all rather spend our time doing things we enjoy versus sorting through another debt payment each month.

2. An Improved Credit Score – Having a high credit score can be very important to your overall financial success. By reducing your debt, you improve your balance to available credit ratio, one of the key factors that affect your credit score. Another way to improve your score is by getting a little boost. Check out Experian Boost for more information on how to do this.

3. Less Worry When Things Turn Bad – It’s never a good time for an expensive medical issue or a job loss. But a hard time can turn really hard when you’ve got a lot of debt to worry about too. Getting rid of your unwanted debt will give you one less thing to worry about, if and when things go wrong.

4. It Just Feels Great Not to Owe Anyone – You’ve probably paid off a debt before. Remember that feeling? Imagine if you could experience that same feeling for all your unwanted debts. That huge burden lifted would feel great!

5. More Money for Other Goals – Lastly, imagine all the other things you could be doing with the money you’re using to pay debts right now. Here’s a few ideas: funding your retirement, saving for a down-payment on a new home, saving for a child’s college, giving more money away to charity, saving for a great family vacation. You get the point. Having less money going towards old debts means you can have more money going towards the things you want more, the things that matter the most.

Have a good reason to be less in debt? Leave it in the comments below.

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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. @Brad

    That is fantastic that you are going to school debt free. That is exactly how we are attacking my masters (not borrowing any money either).

    But…just a reminder that personal finance is just that — personal. What may be right for you is not necessarily the right path for another.

    While I agree that living debt free is the way to go (and we also aspire to be completely debt free), it is not fair to assume that all that borrow money for college are “going blindly into debt in the hopes of securing a job”.

    I could continue with accounts of why taking out a student loan was the best situation for me or even for some of those close to me, but the point is that you’ve got to do the best for your situation.

    I applaud you, Brad, for working hard to not need to rely on loans, but I also would hope that you could keep an open mind for those who it was the best choice for.

  2. “Debt makes you do things you don’t want to do and work at jobs you hate.” – I can’t agree with that statement more. So there is another good thing about being debt free, you don’t have to do those things you don’t want to do or work at a job you hate. That’ll be the day!

  3. Brad Chaffee says

    Great post PT, and very true! I agree with all of them although #2 concerns me. I do understand the need to have a credit score if your career depends on it, but it seems as though the system in place is set up to keep us going in circles. To get rid of most of our debt but not ALL of it, so that we may keep a respectable credit score, is incentive to keep borrowing. Guess who developed that plan. LOL

    It seems pretty unfair to tell someone that the only way they can work for you is by being a good borrower, which is all the credit score says about someone. I guess the freedom to choose is only meant for certain activities. My FICO score can hit zero baby! We are not borrowing another dime ever, and yes that includes our next house.

    PT, I just wanted to say I am enjoying your blog very much! Very good info! Glad I subscribed!

    Oh yeah, my debt freedom, which is only $3100 away (wife’s student loans), will allow me to start the process of starting my business. Very excited! I would also have to very respectfully disagree with Mrs. PT, about student loans. Going blindly into debt in the hopes of securing a job upon graduation is a bit risky. I think there is another way, and I am currently going to school debt free.

  4. Having debt is a pain. I should know – I racked up a bit while traveling extensively the past 3 years.
    Debt makes you do things you don’t want to do and work at jobs you hate.

  5. Christopher Holdheide says

    I currently in the process of taking over the family business and with all the extra expense I will be taking on from that I wish I had more of my personal expenses paid off.

    This in turn would give me more money to work with and more options to take advantage of.

    The thing I would have to say that would help the best is that I would have to worry about were my money is coming from and if I would have eough to pay the bills off every month.

  6. MoneyEnergy says

    Yep, I agree…. though #2 on the improved credit score always confuses me…. because it seems as if the CC companies want to keep us confused about what will actually improve the score. I’ve heard both extremes of having higher limits and not using the full limit, or keeping lower limits, or even trying to max out your limit, etc. And worse, I’ve heard from some who pay their debts off in full each month that their score actually goes down! It doesn’t make any sense. Aside from not making any late payments, I’m not actually sure what really improves your credit score.

  7. How to get out of debt says

    Number 3 should really be Number 1. I can’t emphasise enough the peace of mind you get when you are debt free. You sleep better at night, you behave in a more confident way at work. It’s because you have more options – most of your income is yours to do with as you please instead of going to pay debt; You don’t have to put up with a bad job if you are debt free, you can move even if it means taking a temporary pay cut. And so on.

  8. Very true article. It’s never fun paying the man. I’ve got a question about student loans next time I see you. Want to get your opinion.

  9. Let the record show that your “debt from college” are student loans (as is mine)…not some pizza you bought your sophomore year.

    Maybe it could be argued that debt is debt, but I think student loans are a respectable hurdle that we are finally attacking for good!

    All in good time, right?