[Tendz]

Ignoring debts is impossible. They make things harder in life. When you're weighed down by debt, you can't move forward, nor build towards an emergency fund. But, with better control, planning and discipline, the road to financial freedom will be yours.

If you have too much debt, start repaying that first, because protecting your present is crucial so that you do not have to sacrifice your long term goals. Once you get your finances back on track, you can start saving for the future and live a mentally fulfilling rewarding life too. Make your future bright by being debt free.

[nela13]

Since the beginning of 2021 I am debt free, we had our house mortgage but we paid it all, since then our life has been improving. We made a retirement plan and we can save more every month. Living debt free is having peace of mind too.

[Pousinha]

I never got engaged in debts. My parents hated debts with all their strength, so they raised up me always teaching to never bump into debts. The only and solely acceptable debt for them was a (necessary, they couldn't help) mortgage to purchase their apartment (as only rich people can purchase an entire house or apartment paying it off at once).

[kataomoi]

I would agree with you except for one small thing. It's smart to pay off high-interest debt, but it might be better to keep or pay off the lower-interest debt later. Having an emergency fund and a low-interest debt is better than having no debt and no emergency fund. Because when you have an emergency, then guess what? You'll have to go into debt again, and you'll probably be paying a high interest.

[Tendz]

@kataomoi
If you see my above thread, the whole point of paying your debt early is saving towards an emergency fund. Now, it depends on your careful systematic planning how you go about it. If you think paying lower is in your interest, then ofcourse go for that. It all depends how you're comfortable with it and don't end up further entrenched in financial mess.

[ptrikha21]

Very well said. One of my Personal Loans is complete in March, after almost 5 years. It would certainly help in some better savings in the coming times.
My problem though is that other Credit Card expenses have gone higher in recent months and it would take me time to repay the full amount.
I would need to make some extra efforts in this respect.

[nela13]

I would agree with you except for one small thing. It's smart to pay off high-interest debt, but it might be better to keep or pay off the lower-interest debt later. Having an emergency fund and a low-interest debt is better than having no debt and no emergency fund. Because when you have an emergency, then guess what? You'll have to go into debt again, and you'll probably be paying a high interest.

I understand your point. When we decided to pay out mortgage we used almost all the money we had saved, I was worried at that time but it was the best things we did. We started to save more every month and now we are more stable financially.

[augusta]

Exactly this is what I'm trying hard now to do I just want to concentrate now on saving for the future

[Tendz]

@nela13
I'm happy you're debt free. Having to carry the burden of a debt can take a toll on mental peace. Everyone should try to pay off their debts as soon as possible instead of stretching them out longer than needed.

[ptrikha21]

@nela13
I'm happy you're debt free. Having to carry the burden of a debt can take a toll on mental peace. Everyone should try to pay off their debts as soon as possible instead of stretching them out longer than needed.

Yes, the faster one gets debts cleared, the better else it hinders many plans of ours.

[Treborika]

I personally have really struggled to get out of debt in vain. I have considered making more online money so that I can bail out myself out of debt.

[nela13]

@nela13
I'm happy you're debt free. Having to carry the burden of a debt can take a toll on mental peace. Everyone should try to pay off their debts as soon as possible instead of stretching them out longer than needed.

When we don't have debts, we live more relaxed, we only have the monthly bills (electricity, water, gas...) and we don't live in fear of rising interest rates, which are currently too high for those who have bank loans.

[augusta]

One thing that can drain one of one's savings is debt. Reduce or do away with debt and save money for tomorrow

[kataomoi]

@kataomoi
If you see my above thread, the whole point of paying your debt early is saving towards an emergency fund. Now, it depends on your careful systematic planning how you go about it. If you think paying lower is in your interest, then ofcourse go for that. It all depends how you're comfortable with it and don't end up further entrenched in financial mess.

I understand what you're saying, and I mostly agree. There is no reason to keep a debt with a high-interest rate. I'm just adding that it is better to NOT pay off debts with low-interest rates. Instead, put that extra money towards an emergency fund first.

I understand your point. When we decided to pay out mortgage we used almost all the money we had saved, I was worried at that time but it was the best things we did. We started to save more every month and now we are more stable financially.

I'm glad it worked out for you and your situation is very ideal. But I think in a lot of cases, the situation is not as ideal. People will pay off all their debt and come across an unexpected expense (broken down car, unexpected injury, etc.). If they don't have an emergency fund to cover those unexpected expenses, then they have to take out another debt (with a higher interest rate). So I would say having an emergency fund is more important than paying off debts with low-interest rates.

[augusta]

I personally have really struggled to get out of debt in vain. I have considered making more online money so that I can bail out myself out of debt.

That's the way to go there are expenses you can't cut back but to make more money to meet it's demands

[ptrikha21]

@nela13
I'm happy you're debt free. ... than needed.

When we don't have debts, we live more relaxed, ....

Yes, you are correct. I have got rid of one Personal Loan recently. Yet I had a build up of other expenses and due to that I cannot immediately enjoy paying off for that loan.
Those with Floating Point Home Loans suffer when the interest rates are higher, as banks raise interest rates in that case.

[augusta]

Yesh with loan it will be difficult to save money with high loans or debt. free self from debt to save better

[ptrikha21]

Yesh with loan it will be difficult to save money with high loans or debt. free self from debt to save better

The faster a loan is cleared, the faster we can start into higher savings.
Else Loans and EMIs (even those of Credit Cards) impact our savings and even legitimate purchases suffer.

[oldbuddy]

Yesh with loan it will be difficult to save money with high loans or debt. free self from debt to save better

The faster a loan is cleared, the faster we can start into higher savings.
Else Loans and EMIs (even those of Credit Cards) impact our savings and even legitimate purchases suffer.

It's mostly a matter of Discipline. Some people say to cut up your Credit Cards, but my Discover Card has done a lot to stay debt free just from the rebates we get. I pay off my entire balance every month, so there is no interest to be paid. I also take Surveys online even though they are low paying and deposit my earnings into accounts that pay me Daily Compound Interest. If the Survey Website only pays in Gift Cards, I take my earnings as Amazon Gift Cards and buy them from myself, so just about everything I want can be paid for without taking money from our monthly budget. There is money lying all over the Information Super Highway if you don't mind stooping to pick it up.

[arunima]

We had two house loans going for few years and that seemed like a big financial constraint. Now, that we have paid them , we feel so relieved. My car loan was a very small amount and I have even paid that with some discipline and savings. It feels so good. Seems like a burden is off our shoulder.