April 18th, 2007 
NCN
I was talking to a friend the other day, and he asked me, “What’s the big deal about being debt-free?”. Here is a summary of my answer:
I do not have to worry about late-fees, penalties, interest charges, lost payments, universal default, or other “debt-related” issues. Instead of worrying about how to pay for items I purchased in the past, I am free to plan for the purchases that I am going to make in the future.
If something where to “happen” to me, my wife would be free from the pressure of debt. Instead, she would be able to focus all of her attention on taking care of our kids and herself.
Interest rate fluctuations work for me and not against me. If interest rates, which are currently at all-time lows, begin to creep upward, I have no worries. Why? Because, those higher rates will be working for me, in my savings account, instead of against me, in a credit account.
I have a great job, working with and for great people. I no longer work simply for a “paycheck” but I work because I am doing a job that I love.
I can fully fund my emergency fund, retirement accounts, and college savings accounts. In the past, a good portion of my income was dedicated to debt repayment. Now, that same portion (and more) is divided into my various savings accounts.
I have clearer understanding of the difference between a beneficial purchase and a silly purchase. When I was in debt, and not focused on my financial future, I would “reward” myself by purchasing a “toy”. Now, I reward myself by sending an extra $500 to my Roth IRA.
I enjoy helping other people. Living without debt ‘frees up’ more income for helping others.
I have decided to live without borrowing money. This FORCES me to be ‘intentional’ with my money. I must live on a budget, I must plan for my future, I must balance my checkbook, I must think about major purchase, I must be in control.
Living without debt (and not tapping into available credit) can be challenging, especially when you consider ALL of the major purchases that we make in our lifetimes. Cars, houses, furniture… these things cost a LOT of money. I am (TRUST ME) well aware that it will take some very, very diligent planning to live without EVER borrowing money. But, that is my goal, and that is my plan. Will I succeed? I hope. So far, I’m 15 months ‘in” and things are going well.
Posted in 
NCN:
I’m not debt-free yet, but I’m well on the way there. One thing I’ve noticed that I’m really liking is how much it is simplifying my life the closer I get to being debt free. As I’ve whittled down the number of accounts I’m paying, its made me realize how much of my energy I had been putting into juggling finances — multiple payment dates, more bills than money, etc. This is now energy I have for things like starting a side business.
Now I’m at the point where in just a few weeks (May 14 to be precise), I’ll be sending in the final payment on all but one credit card. I have been juggling multiple cards for so long! When I went down to only two cards a few months ago I really noticed the difference — my regular routine for checking on balances and due dates really got redundant. I can’t imagine how much less work having only one card, and then NO card to manage is going to be!
Well, I’m all geared up to find out actually. I am just months away from having NO credit card debt! Wow.
At the same time I find myself increasingly obsessed with figuring out how much money I can save every month with all this cash flow I’m freeing up and still start an effective snowball on the evil student loan.
I lived without a credit card for 10 years. You can do it NCN.
Just delay your gratification, which can be hard sometimes for me. I love to travel
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I love this post. For me the best things about being almost debt-free (working on that mortgage) are that I’m not stressed, we can do the things we enjoy, and we have more money!
HI NCN.. what a great, inspirational post. Thank you for starting this whole network and helping so many people.
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I have recently become debt-free — paid off the charge card, home equity loan and house! What a freeing feeling. I can enjoy life now as it was meant to be enjoyed. I feel so relaxed, satisfied and content now.
[...] 18 – What I Like About Being Debt-Free – When I need a little extra motivation, I reread this [...]
Great post, it hard to find other people who have figured out debt is bad. I’m starting my third year of debt free living. I don’t think I’ll ever use debt again. “The rich ruleth over the poor, and the borrower is servant to the lender. ”
Thanks
John
[...] What I Like About Being Debt-Free [...]
Hallelujah! There are others of us out there that are debt free and enthusiastically support living without consumer debt. Now we’re working on paying off the house to be totally w/o debt. No more debt, ever!
Good luck and all the best!
Elizabeth