If you want to successfully pay off debt, it isn’t just about creating and following a budget.
Getting your shit together to become debt free is hard if you’re not motivated enough to achieve your financial goals. Sometimes it may seem hopeless. Like there is no end in sight. Making you feel like you’ll never be debt free.
But, as hard as it may be to get out of debt, it’s even harder to stay in debt.
Trying to suppress the feelings of guilt and shame while smiling and acting like everything is ok.
Nodding and hmm mm’ing as others are talking to you, but being too distracted by the shit talk in your head to actually take in what the person in front of you is saying.
The fear filled stories you tell yourself about what others will think of you if they knew your true financial state.
Then, when you finally make the decision (privately of course due to shame) to tackle your debt, you feel isolated and overwhelmed with no one to talk to, no one who will understand.
You’re too embarrassed to tell your friends you can’t join them for dinner because you’re on a strict budget, so instead you lie and tell them you’re not feeling well. Eventually they stop asking.
You’re family questions why you live in a shitty part of town on a salary that could easily afford a nicer area. But you hide the fact that you’re behind in rent and are barely keeping the lights on.
Every night you either cry so hard you eventually exhaust yourself and fall asleep. Or you lie awake, running calculation after calculation in your head of how you’re going to get through until the next pay day.
Living in debt is exhausting and the stress is slowly killing you.
But the simple fact that you’re here reading this says that you’re ready.
You’re ready to show up, do the hard work and stop letting your debt dictate your decisions.
The first two things you need to know to successfully pay off your debt are:
- You are not alone
- You can get out of debt
Here’s 7 Steps to Successfully Pay Off Debt
Believe that you will pay off your debt
Paying off debt is not just a numbers game. It involves creating new habits and shifting your mindset.
Your current thoughts and beliefs about your debt are a big part of what’s keeping you in debt.
The first step to successfully pay off debt is to adopt the belief that you can and you will.
Start observing your thoughts about money and debt. Anytime you catch yourself thinking a negative thought about money or debt write it down, then write down a more positive sentence.
For example: “I don’t have enough money” replace with “I am choosing to use the money I have more wisely”.
This may feel weird and pointless at first but stick with it. The more you can shift your mindset and replace the negative thoughts that have been swimming in your head, keeping you stuck for years, the better your chances of paying off your debt.
Instead of using your energy thinking and stressing about your debt, put that energy to better use through actions that will help you pay it off.
Know why you desire to be debt free
To truly be successful in paying off your debt you need a strong reason why you want to become debt free. Otherwise, when things get tough it will be too easy to give up.
Having a strong connection to your why will help you stay on track when things get tough, and yes things will get tough.
Why do you want to become debt free?
Dig deep. Don’t settle for the easiest answer like “I want to be debt free so that I can stop worrying about how I’m going to pay my bills”.
What does living a debt free life truly look like for you? Will debt freedom allow you to travel the world, work less, give your children a better life? What constitutes a better life? How would your life look if you had 5 million dollars in the bank? How would you feel?
When you can find what will truly motivate you to do whatever it takes to get yourself out of debt THAT is your why. That is what will keep you moving forward no matter what.
Lack of motivation is just a lack of connection with what you are or think you should be doing.
Getting out of debt for someone else’s sake or because society led you to believe that debt is bad will not keep you motivated.
You have to want to do this for yourself and in a way that aligns with you.
Get Organized
You can’t successfully pay off debt if you don’t know how much you actually owe.
So many people try to skip this step. They’d rather bury their heads in the sand than face reality. They make the minimum payments, ignore their statements and continue to use their cards, then wonder why they aren’t seeing any progress.
As painful as facing the truth of how much you owe is, you need to do it.
Call each of your creditors and find out how much you owe, what the interest rate is and what the monthly minimum payment is.
When you tally up all of your totals, it can feel extremely overwhelming. But there are two things that you need to remember.
- There are people out there with more debt than you and people who started with more debt than you and have successfully paid off their debt
- This is the highest your debt will EVER be because from here on out that number is only going to decrease until you hit zero.
Act now, don’t let procrastination hold you back any longer
Now that you know how much money you owe, it’s time to come up with a plan.
People often fail at paying off their debt because they think there is only one way to do it and when that doesn’t work for them they give up.
Every individual’s debt free journey is unique. Finding what works for you will take trial and error and that’s ok. But it’s important that you start today.
Go ahead and research the debt snowball and the debt avalanche methods and start with the one that feels right to you.
If you find after a few months it’s not working, switch things up. All that matters is that you don’t quit.
Same with budgeting. There are so many suggestions out there on how to create a budget but you have to find a method that works for you.
The word budget itself can often feel too restricting that people associate such negativity towards it that failure is inevitable.
If that sounds like you, use the word spending plan instead. Think of a budget as a way to tell your money what to do for you, not your money telling you what to do.
If budgeting by month seems confusing or difficult because you’re paid bi-weekly, then budget by paycheck.
The point is, there is no one magical method that works for everyone. What will allow you to successfully pay off debt is committing to trying, adapting, and persevering no matter what.
Remember, becoming debt free is a process
In case you’re expecting miracles, here’s a reality check: becoming debt free isn’t going to just happen, you need to work at it. #sorrynotsorry
Think of yourself as a pilot and your debt is the plane. In order to get from point A to point B the pilot needs to know where they are going and they need a plan to get there. Along the way they will monitor gauges and if they run into turbulence (setbacks & unexpected expenses) they’ll make the necessary corrections.
Reaching debt freedom takes consistent, deliberate action.
If you’ve lived in debt for more than a couple of years, it’s often become your norm. So, your journey out of debt is going to take you out of your comfort zone.
Following an all-or-nothing approach will very quickly burn you out both physically and emotionally.
And just because you’ve committed to paying off your debt it doesn’t mean you can’t enjoy life along the way – so long as you go about it in a financially responsible way.
This could mean setting aside a small amount of money every pay for the extra fun things. Or including dinner out with friends twice a month in your budget. This money of course only gets set aside after your debt payment and bill payments are made.
Track and celebrate your progress
Using visual trackers can help you stay motivated. These debt free charts are amazing. Instead of focusing on how far you still have to go, focus on how far you’ve come.
When you can actually see the progress you’ve made you’re more apt to stick to it and become even more motivated to reach your goals faster.
Working towards becoming debt free can be draining. It’s important to reward your wins. Treat yourself to a home spa day. Stop by your favorite take out place and pick up dinner. Buy yourself a $20 gift card for your favorite coffee shop so you can treat yourself to a few lattes throughout the month.
Small rewards don’t have to cost a lot of money, or any money. But budget these rewards into your plan so you don’t feel guilty about celebrating.
Ask for help when you need it
To successfully pay off debt you’re going to need a little help along the way.
Asking for help is not a sign of weakness. Sometimes getting help from others can be the solution to many of your problems. Especially when you feel overwhelmed and discouraged.
If you’re not ready to disclose your debt to family or friends find an online community. Search #debtfreecommunity #debtfreedom #debtfreejourney on Instagram and you’ll instantly be connected with thousands of others working towards similar goals.
A word of warning though; when seeking help be careful to not fall into the comparison trap. Don’t start comparing yourself to someone else, you may not know what resources they have, how long they’ve been working at this and you definitely won’t know their whole story.
Surround yourself with people who understand and who have been, or are currently, in similar situations.
You’ve got this!
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