In India, most of the citizens have one or the other type of loan. This is considered as one of the best way to make some savings and also to live a better life. The country is offering loans to all types of people at affordable interest rates. Banks and NBFCs are the great source of such type of loans. It is also said that in India, there is loan for all types of requirement. This raises a huge question in many minds- Under-debt or Debt-free Life- which is better? Of course, a debt free life sounds very good, but having savings in such scenarios is really difficult or will be minimal. Unless you are in a very settled situation, it is not possible to lead a debt free life.
Having certain amount of debt is very common and it is also considered as a good thing. This will create space for savings and crafts safer future. Of course, debt free life is a stress free life but if you are in a stage of saving something for the family, then having some amount of bearable debt is good. It is quite obvious that everyone wishes for debt free life. Nobody will be happy to do overtime to earn some extra penny by compromising on the family time and leisure. But by striving to make ends meet and getting rid of financial liabilities, people tend to work extra.
Loan repayments are not the cup of tea for everyone. Age and mental stress need to be taken into consideration before committing yourself into long term huge loans. At the same time, it is also good to think positive and considered there is no problem without a solution. May be, it just needs some small changes like changing the lifestyle, cutting short unnecessary expenses and so on. Some of the benefits of having debt free life are:
Greater Control on How You Live
Not being controlled by financial obligations and constant pressure will offer great control on your life. There will great steer to direct your funds in a much more revenue generating investments. It will be easy to keep aside money to meet expenses, to save and also to make investments. Apart from these, in case of emergency situations, money will be the last thing you will have to worry about.
Acts as a Stress Buster
Although the good times of everyone’s life stress is the companion. If ever there is an option to lead a life without anxieties and financial pressure, make use of the same. Life is too small to think too much about just money. Make some space for yourself, travel, meet people around, have fun. When one part of your life has washed away by earning, let the other part be saved to lead a stress free life. What’s seems like to very happening and easy now, might turn difficult as you turn older, thus enjoy the moment you live.
Sound Financial Health
When you lead a debt free life, it can be said that you are in a financially sound position. If all your debts are coming to an end by this month, relax, be happy and take a break. Don’t commit yourself into new ones immediately. Make some time and money for yourself and enjoy. Don’t get too engrossed into making money that you will forget to live. Having no debts will also increase your chance of greater and better credit scores.
Offers Great Security
At time huge investment and assets like house will be at stake if you have kept it as collateral on your debts. No being in debts will help you to work in a relaxed manner. Losing job will not be a concern. This will make anyone less desperate for opportunities. There will enough time to search and check the best option available from the alternatives. Switching job, taking break, emergency situations can be handled in a much more relaxed manner.
Life’s Fun Will Remain for Longer Period
Enjoying life with no debts is different. The freedom will be high when there is no challenging environment. Entertainment options will be high when there is enough finance. Pursuing and fulfilling travel plans is possible, this can also rejuvenate the mind and spirits. Not worrying about expense is a luck that not everybody can have in their life.
Thus it is always good to have a debt free life. Helps you to feel empowered to craft a productive lifestyle!