Debt is costly beyond simply the money that is owed. A great new post over at Money Beagle details how debt impacts opportunity, freedom, happiness, sleep, and your overall net worth.
Owing money can keep you from spending on something you may need or want, or something such as an investment that could improve your overall financial situation down the road. That relates to freedom in that you are restricted in what you are able to spend money on until your debt is paid off. As a result of these issues you are less likely to be happy but much more likely to feel anxious and stressed. Feeling restricted is never a happy feeling. Sleeping problems may result as stress and the constant thoughts of being in debt along with the related problems with it are always on your mind. Debt counts against your net worth as a liability so even when it is paid off your net worth is not increased. It just brings you back to the starting point of actually being able to increase your net worth. Debt brings forth a world of different problems that must be considered and avoided whenever possible.
Read the full article here: