Debt, the average millennial has a good amount of it and we just can’t seem to get out from under the mess. I know for me debt has been a bit part of my life since I got my first student loan in 2004. The economy and lack of jobs in the area I could live in has caused that debt to skyrocket. The good news is there are ways to help get that debt down.
The average American person under the age of 35 has around $70k under their belt. That’s not an insignificant amount, and it is little wonder that it can be difficult to face up to. Sometimes, it is taking that first step which is the most difficult, but the biggest step towards shrugging it off.
The motivation needed to take action is high. Without that, you will struggle to gain the momentum and the strength that you need to make the difficult decisions and have difficult conversations. In this post, we look at some ways that you can motivate yourself when it comes to dealing with your debts.
Write down your debt balance
Now, for this, we are assuming that you have already taken the first step and worked out just how much you owe. Now, you need to face it in order to give yourself the kick to deal with it.
Write down the debt balance on a sticky note, and put it somewhere that you will see – on your computer monitor, on your fridge, on the dashboard in the car. Seeing that number all of the time will be difficult, to begin with, but it forces you to change your mindset and face up to it. Every time you go to mindlessly spend money, look at that number. Don’t update it as you pay things off – seeing the highest figure will remind you that you were once in that position.
Try different debt methods
There are multiple tried and tested ways of paying off debts; it is a case of finding one that works for you and your income and lifestyle. The debt avalanche and debt snowball are two such methods.
The debt avalanche method encourages you to focus on paying off the higher interest rates first – so seeing your debt go down faster, and the snowball method advises the opposite, to give you a boost of seeing smaller debts being paid off one by one. You can also do your research into the Debt to Success System BBB.
Have a ‘when I’m free of debt’ bucket list
Is there something that you would love to do, and could afford to do if it was not for the debts that you are dealing with? Maybe you want to redecorate the whole house or build a summer house for the kids.
Maybe you want to go on a dream holiday or visit those friends overseas. Whatever it is, write all of your dreams and wishes down. Look at it periodically to remind yourself what you are working towards.
My I’m free of debt plan is to take a nice two week vacation to Ireland. Then save for another one to Europe somewhere.
Hold yourself accountable
Write in a journal, set up a blog or a social media page or join a debt support group where you can and hold yourself accountable and share your journey to becoming debt-free. You will find there are other people in your position who will encourage you and be inspired by you.
It is easy to become fatigued when it comes to paying off debts because it can be such an arduous and long process, but these steps will motivate you and keep you on track.