Sometimes there’s no worse feeling than being in debt, trust me I know. There was a time in my life when I had more credit card debt than my annual salary. It’s definitely not a fun place to be. However the good news is that you don’t have to be there (in debt and stressed) anymore.
Starting to pay off your debt is probably the single best decision you’ll ever make – after deciding not to get into debt in the first place. When you become debt free you’ll be in a more stable financial position, you’ll have a better credit score and you can choose to spend your money in other ways. The downside is that paying off debt can seem like a never-ending process.
The key to paying off your debt as quickly as possible and savings hundreds (or in my case thousands) of dollars in interest charges is to stay motivated.
Here are four ways to stay motivated when paying off debt:
4 Ways To Stay Motivated When Paying Off Debt
Think Of Anything Else Other Than Money
When you’re in debt it can consume you. It’s the first thing you think of when you wake up, the one thing you think about every time you spend money during the day and the last thing that keeps you awake at night. So my advice is to ignore it. That’s exactly what I did.
Set up pre-authorized payments from your checking account to your debt accounts and let it take care of itself. Be confident in the fact that you took the first step towards paying off your debt and now all you need to do is let time pay off your debt. (Automating even works for saving too!)
Check Your Account Balances
If you want to constantly check in on your progress my advice is to check your bank account balances, not your credit card balances. When you have high credit card or loan balances the majority of your payments are going towards interest costs. Therefore you won’t see the outstanding balances decline very much at the beginning and it’s very discouraging.
Double check your bank accounts to make sure the payments are being made on a regular basis and check in on your credit cards every few months or so. When you see those balances eventually start to drop you’ll be motivated to make more payments and pay off your debt faster.
Pay A Little Bit More Each Month
Every single dime you put towards paying off your debt is money saved in interest charges. Can you think of better motivation to becoming debt free than saving money? I can’t.
As soon as I saw my credit card balance go from $10,000 to $9,000 then $8,000 all I wanted to do was make more payments. I wanted the balance to be paid off so I could use the money for something else.
Make Other Plans For The Money
Remember the tip about thinking about something else to keep you motivated while paying off debt. Well why not think about all the other things you could be doing with your money – other than making credit card and loan payments.
Think about the vacation you want to take, the new outfit you want to buy or the bigger apartment you’ll be able to afford. #HelloMotivation