Paying off debt is one of the key activities that will help you to get on track with your finances. However, it can be tough as you try to become debt-free quickly with the emotions, frustrations and stress that come with it.
In this post, I will walk you through how to stay motivated to pay off debt so that you can focus on freeing yourself from the bondage of debt and become financially independent.
Set a Goal to Pay Off Debt
Now in order to stay motivated while paying off debt, you have to have an end result in mind. This includes figuring out why you want to become debt-free.
This starts with having a goal or goals that will guide your total debt pay off strategy and helps you to measure your progress.
Come up with a debt pay-off debt that is reasonable and achievable and write down a debt pay-off statement that will help you to put your plans in perspective. This statement should also include your “why” or motivation, the date, and the amount.
For example, you want to pay off $5000 in credit card debts and you want to pay off these debts in 1 year.
Your debt pay off statement would look something like this:
“My goal is to pay off my $5000 credit cards within the next 12 months so that I can have more money to save for my emergency fund.“
With this goal – you have a clear vision of where you want to be and when you want to get there. You also have a plan that can track each month letting you know if you are on track or not.
So write down your debt pay-off statement, print it out and put it on your refrigerator or bathroom mirror, and see what happens! In fact, when you write down your goals, you are more likely to achieve them.
This will help to pay-off debt quickly and efficiently.
Schedule a Weekly or Bi-Weekly Debt-Pay Off Meeting
Once you have a goal and you have begun to pay off debt using these debt-free strategies, you will want to check in on your progress.
Spend some time looking at your calendar and find a time that is suitable for you and meet with yourself or your partner to go over your debt pay-off plans.
Whether it’s 30 minutes or an hour – make this time a priority and go over your numbers. Are you making extra payments each month, did you miss your target, or are you on track?
When you have dedicated time to do this, your mind will be focused on paying off debt which can help you to get yourself out of debt fast.
This will blow your mind as you start to see your debt numbers go down and you are able to actually experience the feeling of smashing debt.
Get an Accountability Partner
This one might be a little hard but it’s been noted that having someone to support you along your debt payment journey can help you to achieve your goals.
In staying motivated to pay off debt, try to find a supportive, caring accountability partner that can help you to stay accountable.
Whether it’s a spouse, parent, friend or mentor – finding someone that you trust will help you to stay grounded on this financial journey.
Also, you can read books that will help you to stay the course. Books on debt are helpful, especially those that cover getting out of debt stories, as they are inspirational and educational.
This will spur you into action and give you the extra gumption that you need to keep paying off your debt.
Celebrate Your Debt Pay-Off Milestones
In setting up your goals, you should apply some milestones that will help you to stay motivate in your debt pay-off journey.
The milestones can look like many different things, you could include a milestone for every $100 that was paid off or a milestone for each month you were able to pay-off the debt. Choose one and celebrate the wins along the way.
For each milestone you can treat yourself (something affordable) like a cup of coffee at your favourite coffee shop or a walk in the park. Use this time to reflect on your accomplishments however small they may be.
This will help you to feel confident, bold and proud of yourself which you deserve as you try to make real changes in your financial life.
Visualize a Debt-Free Life and Make a Plan for the Extra Cash You Will Free Up
Take a moment to think carefully about what a debt-free life looks like. Visualize yourself seeing that $0.00 on your credit card statement, car note, mortgage – any debt that you have.
What does that time look like? Do you now have extra cash that you can use for saving more money or for going on a vacation or to start that business you have always wanted?
Visualize yourself at the end of that tunnel and make note of the emotions you are experiencing. Are you relieved, excited or happy? Write them down and remember them. When you do this, you will feel energized to keep going.
Another step to take is to also think about and write down all of the plans you will have post-debt for the extra cash you will now have.
Will this money go toward saving for a house? Will it focus on investing? Will it be used to build assets like a business or real estate?
Here’s why this is important – when you have a plan for your post-debt life, you will know exactly what you are working towards and it will enable you to feel like you have some amount of control over your money life.
How to Celebrate Paying Off Debt
When a train goes through a tunnel and it gets dark, you don’t throw away the ticket and jump off. You sit still and trust the engineer.
Corrie ten Boom
Ultimately, if you want to know how to stay motivated to pay off debt you need to remember that you are on a journey.
It will be tough, it will be arduous but it also may have some pleasant moments (like seeing your debt reduce each month) and that’s worth the journey.
You are indeed the engineer in this process, the mere fact that you are reading this article shows that you are serious about your financial life and you desire to change.
So continue to pay off your debt, stay strong and remember, YOU CAN DO IT.
If you need more help while on this journey, check out my guide on how to improve your finances and how to save money when you live paycheck to paycheck.
If you need extra support, you can also check out my one-on-one coaching program.
Let me know in the comments, what are you doing on your debt pay off journey?
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