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Debt might pretend to be your friend, but it isn’t. Debt is like that annoying "friend" who overstays his welcome every single time. He’s the guy who rummages through your pantry, eats all your Cheez-Its, and sleeps on your couch for far too long.
Eventually, you’ve just got to be honest and let him know it’s time to go! The difference between debt and your annoying friend, though, is debt doesn’t have feelings. So you don’t have to procrastinate or come up with a way to let it off easily.
All you have to do is simply decide that it’s time to get out of debt. And guess what? There’s never a better time to start dumping debt than right now! Here’s why:
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1. You’ll have more time to save.
The quicker you get out of debt, the quicker you can start building your full emergency fund, investing for retirement, saving for college, and making big purchases, like a car or down payment.
Related: What You Need to Know About Savings
2. Christmas is still 10 months away.
If you’re still recovering from Christmas debt, think about this: You could be out of debt by next Christmas. And you know what that means? No more Christmases on the credit card! Imagine purchasing presents in December that don’t end up haunting you, via credit card bills, well into the next year. You can do just that!
3. Now is always better than later.
It’s the old saying, "Why do something tomorrow you could go ahead and do today?" Getting out of debt is good for you, like changing your diet or losing weight, so you’ve got nothing to gain by holding out any longer. But you’ve got a lot to lose. Thomas Stanley, author of The Millionaire Next Door, says 80% of America’s millionaires are first generation. The more time you have, the more ability you have to become part of that 80%.
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4. Interest can work against you.
When you start paying off your debt, we’ll always tell you to ignore interest rates and pay off your debts in order of smallest to largest. That’s the debt snowball. The longer you’re in debt, though, the more interest you’ll acquire on those debts—and the more debt you’ll owe. Then Visa has you right where they want you. Get out of debt and get moving on that interest.
5. Interest can work for you!
Compound interest is the coolest math trick ever, so make it work for you by getting out of debt and focused on saving as soon as possible! If you’re not exactly sure how compound interest works, we’ve got you covered.
There’s no need to wait around any longer to kick debt out of your life. You’ve got this.