4 Tips to Stay Motivated While You Get Rid of Debt
You would think that paying off debt would be a reward in itself, but like so many things that are good for us and that really do feel good once we’ve accomplished them, it can be hard to take the right steps to do it.
One of the big problems is that paying down debt is a slow, incremental process, nothing like the happy hit that you feel when you’ve spent your money on something you really want.
If you are struggling to motivate yourself, the tips below can help.
Don’t Overdo It
One problem that people run into when they try to improve finances, utilize a budget, save money, or get rid of debt is taking an all-or-nothing approach. That is, they feel as though they have to cut out everything that makes their life pleasant and spend every penny they make on necessities. This is not a sustainable approach, and if you have been trying it and failing, it’s little wonder that you weren’t motivated. Paying off debt is important, but actually having a life is, too, and you need to create a plan that will allow you some enjoyment and indulgences.
Refinance Your Student Loans
One of the most common debts that people carry is student loans, and if you aren’t careful, this can end up being an ever-growing amount that follows you around for decades. One reason this happens is because of interest rates that outpace your payments. If you have a variable rate loan, your interest rates may currently be rising, which can mean having to pay a lot more for the money that you borrowed. One way around this is refinancing. With a lower interest rate on that refinanced loan, you can make a plan to pay off more than the minimum each month in order to stay ahead.
Roll Your Credit Card Balances
As with student loan debts, interest can be your downfall when it comes to credit cards as well. You can deal with this by looking for cards with lower interest rates that allow you to roll existing balances onto them. Some will even have introductory rates that give you 0% interest for six months or longer. Be sure to read the fine print on any of these offers since the rates can shoot up even higher than what you were paying originally after that introductory period, but you can make some good progress on the balance in the meantime.
Reward Yourself
It is motivating to see those numbers come down and know that financial security is getting more and more in reach, but for most people, that’s not really enough. Paying off debt is hard, and can be stressful, and you deserve rewards for doing so.
Come up with a list of ways to reward yourself ahead of time, ideally things that don’t cost anything or that cost very little money and definitely not anything with a big price tag on it. For many, simply giving themselves the gift of time to do something indulgent, such as binge-watch a favorite series of TV shows or movies or go on a long bike ride, can be a great free reward.
