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It improves both their health and behavior.
It does not make them become lazy or fat, lack of exercise does that.
It discourages annoying habits like cat spraying and dogs mounting.
It reduces the urge to roam and fight, your pet will be less likely to become lost.
It saves money on future vet bills. Fewer injuries / accidents mean less vet bills
It saves your pet from mammary, prostate and testicular cancer.
It means lower licensing fees.
It eliminates sexual frustration and the risk of pregnancy and birth.
It makes happier, healthier companions.