Olde Hornet
Well-Known Member
https://retirementplans.vanguard.com/VGApp/pe/edufreshness/PayingOffDebt#/
When you pay off debt, be it a credit card balance or a car loan, you may think, "Well, that's that," allow yourself a brief moment of self-congratulation, and move on to the next item on the to-do list.
But you get a lot more out of paying off debt than a passing sense of relief, says Ryan Howell, Ph.D., associate professor of psychology at San Francisco State University. When you pay off debt, you also reduce stress, strengthen your self-image, and have a better shot at being healthy, according to Professor Howell.
We asked Professor Howell, who also blogs about personal finance,* to talk about the hidden benefits of closing out debt.
Question: What are the psychological benefits of paying off debt?
Professor Howell: The most important thing is that you get relief from financial stress. And psychologically, you have removed the first barrier to being able to spend discretionary money left over—after you have paid rent, bought food, and put some away for retirement—to be happier.
Question: Can paying off debt have beneficial health effects?
Professor Howell: It's often difficult to get people to understand that anything that produces stress leads to huge physiological changes in the body. But there is tremendous evidence behind that. Moreover, when you are stressed, you get less sleep, you are less motivated to exercise, and you are likely to eat more.
On the other hand, if you start managing your money, tracking your spending, getting on a budget, you will see right from the beginning changes in your behavior.
The ability to feel that you are now in control reduces stress and will produce health benefits.
When you pay off debt, be it a credit card balance or a car loan, you may think, "Well, that's that," allow yourself a brief moment of self-congratulation, and move on to the next item on the to-do list.
But you get a lot more out of paying off debt than a passing sense of relief, says Ryan Howell, Ph.D., associate professor of psychology at San Francisco State University. When you pay off debt, you also reduce stress, strengthen your self-image, and have a better shot at being healthy, according to Professor Howell.
We asked Professor Howell, who also blogs about personal finance,* to talk about the hidden benefits of closing out debt.
Question: What are the psychological benefits of paying off debt?
Professor Howell: The most important thing is that you get relief from financial stress. And psychologically, you have removed the first barrier to being able to spend discretionary money left over—after you have paid rent, bought food, and put some away for retirement—to be happier.
Question: Can paying off debt have beneficial health effects?
Professor Howell: It's often difficult to get people to understand that anything that produces stress leads to huge physiological changes in the body. But there is tremendous evidence behind that. Moreover, when you are stressed, you get less sleep, you are less motivated to exercise, and you are likely to eat more.
On the other hand, if you start managing your money, tracking your spending, getting on a budget, you will see right from the beginning changes in your behavior.
The ability to feel that you are now in control reduces stress and will produce health benefits.