It can be depressing, so today’s Debt Help is going to be 4 ways to get motivated about paying off your debt.
The Beauty Of A Snowball
If you feel like you’re running up a slippery hill and are constantly frustrated with your debt, it’s time to learn about the magical snowball method. To pay off your debts effectively, you need a plan. There are two options for paying off your debts, and most people choose the wrong one.
The most common advice is to pay off your loans that have the highest interest rate first. This makes sense, as the longer you hold onto those debts the more you’ll pay overall.
The snowball method says that math and interest aren’t your most important consideration. What you really need is the motivation and excitement that comes from actually seeing progress in your situation.
To do this you list your debts smallest to largest and pay off the smallest balance first. You probably have one debt that’s small, maybe a few hundred dollars or something. While paying minimums on everything else, attack that little one with everything you have and knock it out of the park. You’ll feel amazing and encouraged to go hard on the next one on your list.
Always Look To The End
Your credit card statement may have a box telling you how long it will take to pay off your bill if you just pay the minimum rate. You should also use online calculators to calculate how much faster you can pay that off as you get more aggressive.
Come back to these calculators often and get excited about the steps you’re taking. Cut back your cable package and see what an extra $40 a month will do for your debt. Watching that future debt-free date and today slowly meet up will keep you motivated until you get there.
Take Control Of Your Life
Face it, being in debt is a symptom that at least one part of your life is out of control. Spending more than you make is not some right you’re born with – it’s foolish and short-sighted.
By taking a stand and deciding that debt is out of the question and that you’re going to work your hardest to get out provides a strong sense of control in your life and will make you proud of the decisions you’re making.
What Freedom Looks Like
Your debt will follow you around for your whole life. Imagine for a moment not owing anything to anyone. If there was ever a reason to get out of debt, this should be it.