Tag: Getting Out of Debt

10 Ways to Stay Motivated When Paying Off Debt

The post 10 Ways to Stay Motivated When Paying Off Debt appeared first on Penny Pinchin' Mom.

It is easy to lose your focus any time you are working towards a goal.  It takes dedication, but even then you may lose your desire to keep going.   This is especially true when trying to reach your financial goals, such as getting out of debt.

get out of debt and stay motivated

Paying off debt is not easy. You start out with great determination and willpower to make it happen. But, as time goes on, you may find yourself loving motivation to pay off your debt.

If your debt balances are high, the balances may not drop as quickly as you would like.  It can make you lowe your desire to keep going. In fact, you might just feel like quitting.

I’m here to say don’t.  Don’t give up.  The key to is to find the motivation to pay to get out of debt, even when it isn’t easy.  These tips will help.

 

STAYING MOTIVATED TO PAY OFF DEBT

MY EXPERIENCE

When my husband and I were trying to get out of debt, there were times when we wanted to quit.  However, we were both determined to stick with it and not give up.

Sadly, that is not true for many.  People get excited at the idea of getting out of debt, but they never follow through.  For one reason or another, they lose the motivation to continue.

This means that they go back to their old habits and often times, end up even further in debt.  It is sad, but it is true.  They lost the will to stay the course.

 

 

WHERE DO YOU START?

First of all, you have to be willing and fully committed to wanting to be debt free.  If you aren’t willing to make sacrifices, that means you are not quite ready to start.  If you try, you will probably fail.

However, if you are ready and willing to put in the hard work involved you might be ready.  You need to fully understand that this process is going to take some time.  It took my husband and I more than 2 years to get out of our debt.  It may take a while – but it will happen.

 

FINDING THE MOTIVATION TO PAY OFF DEBT

1. Cheat once in a while

When you are trying to pay off your debt with laser focus, you might start to feel a bit of resentment towards it.  After all, that is your money and you see none of it.  Instead, it moves right over to your debtor.  You never get to enjoy it.

You need to spend money.

When you allow yourself a chance to go out to dinner or buy that new pair of shoes, you will continue to stay motivated.  It allows you to take the focus off of your debt for a short time and put it on yourself.

For example, when my husband and I were in paying off our debt, we did not eat out at restaurants.  We gave that up completely.  However, each time that we paid off a creditor we were able to go out to dinner. It allowed us to celebrate.  We had one cheat night, and then we were ready to get back on track again.

Just don’t do this very often, or you’ll end up quitting and up spending more than you should.

 

2. Be accountable

Whether you are a relationship or not, you need to find someone to whom you can be accountable.  Call them an accountability partner. The journey to being debt free can be a long and lonely adventure. Finding the right person to support you along the way can be vital to reaching your goals.

This person could be a friend or family member. While you might want to use a spouse or partner, they may not be the best person.  You really should find someone who has been on this path themselves and reached the end.  Someone who is debt free and battled to make it happen can provide much more support than someone drowning in debt.

 

3. Dream

Sit down and look at your finances.  Imagine all of the things you could do if you were not living with looming debt.  Perhaps you could afford that car you want. It might even mean being able to quit your job and stay home with the kids.

Read More:  Setting Your Financial Goals

 

4. Change your habits

Look at your debt.  What caused you to end up there. If was due to spending too much at Target, it means you need to stop.

You have to change your habits by creating a budget and a debt plan.  Take it further and change the way you spend your free time.  It won’t be easy, but no one said getting out of debt was going to be simple.

It is not an easy thing to do, but find a way to focus your energy on the things that created the debt to other things you enjoy.  Try to find the joy in the simple things, which cost no money at all.

Looking beyond the debt and definitely help you stay motivated when getting out of debt.

Read More: Why Your Debt Plan Will Fail

 

5. Get angry

One of the simplest ways to stay motivated is to hate your debt.  Review your bills and add up the money you are wasting on interest payments every month.  Just seeing the money you waste will make you angry. Heck, it might even make you nauseated.  Good.

Hate the debt and you’ll want to make it go away.

 

6. Daily reminder 

Put the total of your debt on your mirror. As you pay them down, update it with the new amount. Every day you will see that you are making progress. You will see where you were and where you have to go.

 

7. Continue to learn

Just because you read one article about how to get out of debt, doesn’t mean you are an expert. If you were, you would probably have never gotten into debt in the first place.

Keep reading and learning. Follow your favorite bloggers and read their tips for getting out of debt.

Read More: How to Get out of Debt on a Lower Income

 

8. Be patient

“Rome wasn’t built in a day.” Your debt didn’t accumulate in just a month. It took time. That means it will take time to pay it off.

If you are doing all you can to do get out of debt, then there no more you can do. Just look forward to the day you get to scream that you are debt free!

 

9. Connect with others

I mentioned an accountability partner above and that is great, but what do you do if you can’t find one? Easy. Look to others who understand.

With social media, it is easy to find people who are in your situation. They may be on Facebook or Twitter. You might find them in the comments of personal finance blogs. Look around for those who are making progress and network with them.

We all need help with this journey. There is no rule that says you have to be best friends with them to get the motivation and support you need.

 

10.  Read success stories

There is nothing more motivating than reading about others who have accomplished their goals. Reading about ordinary people who have paid down thousands of dollars of debt can be inspiring.

Read More: My Debt Free Journey to Paying Off $35,000+ in Debt

 

 

how to get help paying off debt

The post 10 Ways to Stay Motivated When Paying Off Debt appeared first on Penny Pinchin' Mom.

Source: pennypinchinmom.com

How to Stop Using Credit Cards

The post How to Stop Using Credit Cards appeared first on Penny Pinchin' Mom.

The reason most people are in debt is due to credit cards. These little pieces of plastic tempt you with high limits and low payments.  They are simple to use and often a hard habit to break.  You have to teach yourself how to stop using credit cards and end the cycle of more debt.

credit card debt

According to the Federal Reserve, Americans have accumulated $992 billion in credit card debt (as of November 2016).  While many people pay them off every month, there are thousands of others who do not.

They just pay the minimum and then continue to use the cards, resulting in increasing debt. If you are serious about wanting to get out of debt, you have to take steps to stop using your credit cards and racking up more debt.

Read More:

  • Why Your Credit Score Matters and How to Increase It
  • How to Pay off Credit Card Debt
  • The Five Mistake People Make When Getting Out of Debt

HOW TO STOP USING CREDIT CARDS

UNDERSTAND WHY YOU SHOP

It is so easy for someone on the outside looking in to tell you to stop spending. However, if it were that simple, you would have quit long ago, right? Before you can stop spending, you have to know why you are doing it.

Your reason could be to replace something missing in your life. It might be the high you get from spending. Your logic is not wrong. It is your own.

Once you understand why you shop, you can then start to work on that, and in turn, your desire to buy as much can slowly fade as well.  Knowing the reason why is one of the first things you must do finally break the cycle of credit card debt.

Read more:  Why you continue to overspend

 

CUT UP THE CARDS

I know that this is pretty extreme, but the truth is that it works.  If you do not have cards to use, you can’t rack up additional debt.

If you are nervous about getting rid of them altogether, put them on ice.  Literally. Put your credit card in a bowl of water and freeze it.  When you feel you need your card, it will be more challenging to get to, and the urge to use it may pass more quickly.

 

USE ONLY CASH

One thing that goes hand-in-hand with cutting up the credit cards is sticking with cash.  That doesn’t mean a debit card.  It is using paper money.

When you use cash, you have to think twice about what everything costs.  When the money is gone, you can’t spend any more.

When you use a debit card, you can still spend more than you intend.  That is never the case with cash.

If you have $100 to spend with cash, you can not make a purchase that is $105.  But, with a debit card, you still can.

It is far to easy to swipe plastic.

Read more:  Setting up and using a cash budget

 

SET UP REWARDS

A simple trick to sticking to not using your cards is to set up milestone rewards.  For instance, if you can go one week without using your card, allow yourself an extra coffee the following week.

As you reach more and more milestones, such as paying off a card, going six months without using plastic, etc., set up small rewards for yourself.  Just make sure that you never cover the cost of your reward by using your credit card!!

 

CREATE A VISION BOARD

If you want to stop using credit cards and pay off your debt, it is helpful to have a goal in mind.  It may be to afford the new car you want or buy a home. It might even be to live without feeling so much stress.

Whatever your reason, create a vision board.  When you have a clear vision of what will happen when you reach your goal, the more likely you are to stay on track.

 

GET AN ACCOUNTABILITY PARTNER

The best way to stop is to have someone to help keep you on track.  An accountability partner can do just that.

If you are in a relationship, you will be accountable to your partner (of course).  However, if you both have a difficult time not using credit, you might want to look beyond yourselves.  Find another couple who is in the same situation as you are and become accountable to one another.

However, if you are single, then it may be a bit more challenging to find someone.  Reach out to friends and family to find someone with whom you can connect and help one another.

 

TRACK EVERY PURCHASE

When you have a cash budget, you get into the habit of doing this.  However, if you are not ready to make that leap, start tracking every purchase you make.

Sometimes, seeing where you spend your money can be enough to make you want to throw the credit cards away for good.

Read more:  How to track your spending

 

MAKE SURE YOU BUDGET WORKS

You absolutely must have a budget.  There is no way to get around it.  But, more than just a budget, it needs to be a budget that works.  Sit down and go back over your budget to see where you may be spending too much and see if you can find ways to make improvements.

Also look carefully at how much money you spend on credit card debt each month.  Imagine what you could do with that money if you did not have to send it away to someone else.

Read more:  How to create a budget that works

 

Put some simple strategies to work and you’ll stop using credit cards and can get in control or your money.  Finally.

stop using credit cards

The post How to Stop Using Credit Cards appeared first on Penny Pinchin' Mom.

Source: pennypinchinmom.com