I was recently looking at the terms of a loan that my wife and I have and noticed that – upon death – the loan is forgiven. “Wow,” I thought for a second, “why not just wait til we die and all is good?”
This could be the thinking for many. They look at their high debts and just throw their arms up in the air – and figure all will be forgiven eventually. Why even attempt to pay them off?
I want to give you a few reasons why it’s important to pay your debt off while living and do so, urgently.
- Protects your estate. Be careful to read the terms of all your debts and loans. Some of these can and will go after the money from your estate upon death.
- Legacy. Your legacy will outlast you. Make it a good one. Many of your records will be revealed to your family and friends. Leaving a burden of debt for your family can tarnish the example you have tried to set and the good you have you done in your life.
- Will free you up later on. When you can settle all of your debts as soon as possible, this will free up the rest of your money. Dropping a $200 student loan payment off your monthly budget is a huge investment for your future. You can apply it to a 401k, savings or snowball that payment into your mortgage.
- Gets you out of enslavement. Proverbs 22:7, “The rich rule over the poor, and the borrower is slave of the lender.” It’s true. Pay off your debts and you will know freedom.