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Why becoming debt free is for you

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No one aspires to end up carrying significant debt, nor do they seek to get caught in an endless, unmanageable debt payment cycle. But, for many of us, it can often feel like two steps forward, one step back when it comes to paying off debt.

There are many reasons why carrying a lot of debt may feel “normal” to us—our relationship with money growing up, the socioeconomic problems we face, widening wealth gaps, and our overspending peers, among many others.

Living debt-free may sound like a dream, but it's not an impossible goal, especially if you can reframe your mindset to break free from what can sometimes feel like an endless cycle.

1. You deserve to not be stressed about money 

Most Americans are stressed about their financial situation. It causes sleepless nights and negatively impacts both your mental health and self-esteem. 

Working towards debt freedom can help alleviate that stress and empower you to feel like you have more control over both your current financial situation and whatever else might come your way in the future. 

First and foremost, you have to commit to reducing your debt, even if it comes with some tough spending cutbacks. Once you’ve decided it’s time to give debt the boot, the next step is to make a financial plan that includes your longer term goals. Think of this plan as your North Star, always there to guide you along in your debt-elimination journey. 

Vary your goal sizes, too—while living debt-free is the destination, what smaller milestones can you hit along the way?

2. Debt freedom gives you options 

Although tackling debt isn’t easy, the trick is to envision a debt-free future where you have greater flexibility to make the choices you want without living under the cloud of debt. 

Whether you want to quit your job to pursue your passion or spend more time with your child, debt freedom can help bring options like these to fruition. Think about it—the fewer expenses you have, the less money you need to achieve the lifestyle you envision.

Paying down debt can require a lot of self-discipline. But, it’s easier to follow your plan when you can remind yourself of what you’re working towards. Focus on what future financial freedom looks like and let that guide your actions. 

3. You can save for your future 

Breaking free from the cycle of debt is a huge accomplishment, but it also opens many more doors in life when coupled with a newfound ability to save. Imagine a world where you don’t have to be 65 to retire or where you have enough in your savings account for a year of emergencies—so you don’t have to worry about losing your job, getting sick, or taking extended leave.

Many people think of money as a finite resource. Powerful savers, however, treat their money as a tool. Resources can be depleted, but if you think of money as a tool you can wield, you’re more in control of what you can build with it.

Becoming debt free makes you more money than you think. The more money you put towards retirement today or into a high-yield savings account, the more time it has to gain interest, which can help build your finances over time. Need some help reaching your savings goals faster? A high yield Varo Savings Account offers no fees and easy auto-saving tools to help grow your money.

Although debt freedom may seem like a no-brainer, we understand it’s obviously easier said than done. It helps to treat reducing debt as a marathon versus a sprint, as well as keep a sharp focus on the long term benefits it offers in terms of financial freedom and saving more for the future. The important thing is to reframe your mindset to believe that living debt-free is indeed possible rather than an insurmountable undertaking. 

Unless otherwise noted above, opinions, advice, services, or other information or content expressed or contributed by customers or non-Varo contributors do not necessarily state or reflect those of Varo Bank, N.A. Member FDIC (“Bank”). Bank is not responsible for the accuracy of any content provided by author(s) or contributor(s) other than Varo.

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