The Benefits of Being Debt-Free

It never fails. You set out to pay off your debts. You’re ambitious. You snowflake money toward your debts. You go gazelle, as Dave Ramsey would say. You’re successful…for a while. Then you begin to lose steam. You start to remember the good ole days, when you could go out to eat whenever you pleased. The days when you didn’t worry about a budget, when you didn’t worry about being in debt.

I’ve been there. When you have a lot of debt to pay off, sometimes it takes years to become debt free. And sometimes you begin to question whether all your efforts are worth it. When you get to that point, it’s good to remember the benefits of being debt-free. Sometimes that’s all you need to keep going. So what are those benefits?

3 Benefits of Being Debt-Free


When you don’t owe anyone money, you never have to worry about creditors coming knocking on your door, demanding payment. You never have to fear that when the phone rings, a bill collector is on the line.

But even if you aren’t being harassed by bill collectors, paying off debt can bring a sense of security. As we’ve all learned in the last few years, job security is a thing of the past. If you’re debt free, when you lose your job, you can cut your expenses pretty far. It’s easy to cut out cable, cut the grocery bill, and go without a landline. But there’s not much you can do about a $200 a month credit card bill. Whether you have a job or not, you still owe the money.


When my husband and I were newlyweds, we thought it would be really cool to spend a year in Mexico as missionaries. It was a fun idea, but it was completely unrealistic. Why? We had student loan and credit card bills to pay. And everyone knows missionaries live on next to nothing.

When you have no debt, your life is pretty flexible. You can take a chance on a dream job, because your salary doesn’t have to cover credit card payments. You can become a missionary for a year, because you don’t have to worry about those payments due back home. You’re not tied to your credit card payments.


The most important aspect to being debt free is your control over your money. When you have large credit card or loan payments, it can feel like those creditors are controlling you. There’s so much you CAN’T do with your money, because you have to pay your debts.

But when you are debt free, you have much more control over your money. Sure, you have to pay your taxes, but beyond that, your finances are in your own hands. Do you want to travel? Save they money you were paying toward debt, so you can take that trip you want. Do you want to buy a house? Save for a house?

By paying off your debt, you free up your money for the things you WANT to do. You’re not enslaved by bills you NEED to pay.


By , on Oct 30, 2010
Lynnae McCoy I'm Lynnae, wife of one and stay-at-home mom of two. I'm committed to getting out of debt by being frugal with my choices in life.


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  1. Pam:

    This hit home because about 3 years ago I felt God calling me to cut expenses to be able to help with missions… little did I know that He would actually end up calling me to work in the mission field. I got my final debts paid off last year, felt God saying I was to apply for full time mission work. As soon as I have my funds raised, I will be heading to work with Healthcare Ministries ( for 2 years! It feels great that I had my life ready when God told me it was time to go! thank you for encouraging people to keep working towards the debt-free goal! It’s completely worth it!

  2. Doug:

    I was debt free for many years and only pick up debt with a plan to pay it off first. Mortgage is the only debt we have today and one of the benefits of working on our debt is creating good credit. With good credit we have have been able to get our house payment so low we would never be able to find someplace cheaper to live. We still worry about our jobs but know if we loose them it is more expensive to live any place other other than in our own home.

  3. marci357:

    Debt Free = Peace of mind and Freedom of Choice.

  4. AngelSong:

    Well said! A reminder like this one is very welcome. Thanks!

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