GOOD housekeeping has led to Bromsgrove District Council being no longer in the red.
The authority has made an early repayment of its long-term external loans totalling £1.5m.
Council leader Cllr Nick Psirides (Con, Norton) said: "I am delighted that we are now debt-free.
"It also means we can now spend all the capital receipts that come in, from the sale of council houses and other council assets, whereas before we could only spend 25 per cent due to government restrictions. This is good news."
The council received a £101,000 discount for the prompt repayment of the debt.
Head of financial services at the council house, Andrew Fisher, said the loans had accumulated over many years for various projects including housing, leisure services and car parks.
"But due to good housekeeping and financial management the council is now able to declare itself externally debt-free," he added.
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