The New York Federal Reserve reported that our total credit card debt reached $930 billion at the end of 2019, showing that many of us are in the red. With debt being so common, it can sometimes feel like a debt-free life is far out of reach. If you’re actively working on improving your finances by participating in a debt resolution program, it might seem even more difficult to see the light at the end of the tunnel.
Fortunately, if you’re working with Beyond Finance, your debt resolution program has been mapped out with your unique financial situation in mind. By keeping up with your payments, staying focused and remembering your end goal, you can successfully complete your program. Here are a few of the things you have to look forward to at the finish line:
Better Habits That Will Keep You out of Debt
You’ve put a ton of time and effort into getting out of debt, and you’ve likely learned new skills and developed smart money practices over time. Don’t throw it all away once you’ve resolved your enrolled debts! Continue to follow a budget, pay your bills on time, and avoid utilizing more than 30% of your credit.
The Ability to Invest in Your Future
Paying back debt is, in a way, investing in your past. Now that you’ve caught up and put more cash towards the present, you should consider investing in your future as well. Think ahead by putting some of your money towards your retirement, savings account and emergency fund.
A Mental and Emotional Boost
Paying off a credit card or a student loan not only brings relief to your wallet, but it can come with great mental and emotional side effects. Knowing that you’ve resolved and paid your enrolled debts and won’t be dealing with calls from creditors can bring you much-needed peace of mind. Having access to more of your money may also help improve your relationships, as you’ll have less pressure to pick and choose between living expenses and can focus more on supporting your family and loved ones.
Your confidence may have also grown throughout your debt experience; now that you know you’re capable of paying off a mountain of debt and reclaiming control of your money, what other great things can you accomplish next?
Time to Build up Your Credit
Paying off debt likely means that you’re making regular monthly payments and utilizing less credit, both of which can lead to improvements in your credit score. Once you’ve completed your debt resolution program, you can keep that momentum growing and look for other ways to improve your credit. Make sure you’re continuing to make on-time payments on any additional open accounts, and avoid completely closing old accounts or triggering new hard credit inquiries.
You may also want to consider getting a secured credit card, which allows you to demonstrate your creditworthiness over time with less risk than an unsecured line of credit.
More Control of Your Finances
One of the best benefits to being unburdened by debt is being able to keep more of your paycheck every month. Now that you don’t have to send those payments to your creditors, you can put some of that money towards the things that matter the most to you, like family vacations, hobbies and home improvements. You can also begin working towards bigger purchases, like a new home or car.
No matter where you are in your debt resolution journey, you’re taking steps to an improved life. Once you’ve resolved your enrolled debts, you’ll be rewarded with more freedom and control. If you need additional help with your Beyond Finance program, please reach out to us over the phone or through your Beyond Finance Dashboard — we’re here and ready to help you every step of the way. Keep up the good work, and we’ll see you at the end of the debt-free finish line!