Nonmonetary Reasons to Pay Off Debt

Anyone who has ever faced having a mountain of debt may tell you that the negative effects are not only financial but they can also wreak havoc in other areas of life. In some cases, ancillary effects may be worse than the obvious financial consequences. The act of paying off the debt can provide needed relief in a variety of important ways.

Relieving Stress

If you carry a lot of debt, you may also worry about whether you'll ever to be able to pay it off or what will happen if you can't meet the monthly payments. The stress may have negative consequences on your health, including the inability to sleep or eat properly, and you might suffer from ailments like high blood pressure or heart disease. The stress may even lead to depression.

Social Stigma

A stigma is often attached to those who carry a large amount of debt, whether fairly or unfairly. Friends or relatives who are aware of your plight may view you as lazy or irresponsible, or as someone who has little self-control. If your debt leads to your filing bankruptcy, the stigma may be even stronger. Paying off the debt can remove the stigma as it shows others you can hold yourself accountable for your actions.

Sense of Self-Worth

Paying off your debt may improve your sense of self-worth. Instead of feeling defeated or "beating yourself up" for getting into your predicament, the process of paying off your debt can give you a sense of accomplishment and boost your self-confidence as well as reduce feelings of shame or guilt. You may develop the belief that you have the ability to overcome any obstacle in your life, no matter how daunting it may seem. You might also develop better lifestyle habits that make you feel better about yourself.

Helping Others

Paying off your debts can make you feel as if a psychological "ball and chain" has been removed, which provides a sense of freedom and happiness. You may be able to enjoy more meaningful relationships and not feel as though you are hiding anything. You can serve as an example for others facing large amounts of debt and even serve as a role model, much as recovering alcoholics or drug addicts often provide the most effective means of support to other addicts.