The journey to debt freedom is sometimes a long and torturous one. If you owe a lot of money, it could take years before you become debt-free. In those years, your life could become a nightmare if you do not handle your debt right. You have to figure out a way to stay excited and motivated while paying off your debt.
There would be times when you feel like you’re throwing all your income into your debt repayment plan and not seeing any results. This is especially true for people with high debts and low income. However, you can’t just quit because you feel like it, quitting would only further complicate the problem. This article discusses a few ways to stay motivated while paying off that massive debt.
Create Milestones and Celebrate Them
If for instance, you owe $20,000 in student loans, you do not have to wait until you pay off the entire sum to celebrate. You should create milestones for one or two thousand dollarsand get yourself a treat every time you reach a milestone. However, remember not to splurge on your treat. You have to spend responsibly and remain on a budget while paying off your debts.
Read up Stories of Others who Have Successfully paid off Similar Debts
Read up stories of those who have gone through a similar journey and emerged successfully. Some people have gone through situations a lot worse than what you are currently facing. Some have decided to file for bankruptcy along the way and have still gone ahead to rebuild all over again from scratch. Donald Trump has been through a few business bankruptcies and has always managed to bounce back. If you have accessed your situation and decided to file for bankruptcy, then get in touch with a bankruptcy Attorney at Resnik Hayes Moradi LLP.
Visualize Some Things to Do Once You Get Out Of Debt
Make a list of all the fun things you can do once you are out of debt. Visualize the awesome feeling you’ll get when you are no longer feeling overwhelmed by your debt. All that additional money might be enough to take a trip to your favourite holiday location or buy a cute piece of jewellery for yourself. Write these plans down, place them on a vision board and look at them whenever you are feeling deflated.
Make a Payment Plan and Stick to It
If you do not already have a comprehensive payment plan at this point, you would need to get one now. Make a payment plan on an excel spreadsheet and follow this plan religiously. Whenever you pay off a particular debt, delete it from the spreadsheet and celebrate this little victory. Also, create a separate spreadsheet to record all you’re spending. Noting down your expenses most definitely discourages excessive spending.
Sell off Some Personal Effects and Payoff the Smaller Debts
Do you own any gold jewellery? Do you own a car? If yes, do you need it? Funding Cloud Nine suggests selling off any personal belongings that you can afford to live without, especially those that cause you to spend money. This way you can pay off some of your smaller debts entirely, and focus on paying off the bigger ones.