Pay Down Debt with These 10 Tips

Many people are highly motivated to pay down debt.  Sadly, as with many goals, people lose focus and get off track rather quickly.

But, there is hope! With your desire to work hard to overcome your debt obstacles coupled with these 10 tips to help you stay on track with your debt plan, you’re likely to succeed this year!

Cut Up Your Credit Cards

Seriously, this is an oldie but a goodie because it works. Either cut them all up or keep one just in case you need it for an emergency (if you don’t have the cash on hand). You don’t have to close all the accounts, but you won’t be tempted to spend or increase your debt without credit cards in your wallet.

Build Your Payment Into Your Budget

For a debt plan to work, you need to have a place for your monthly payment in your budget. If you have to search for money every month to pay down your debt, you’ll likely never make any progress. Work your payment into your monthly budget and cut out other expenses where necessary to make room for your pay off plan payment.

Be Patient

It’s easy to get into debt, but it’s difficult to get out of debt. It takes time, hard work, and patience. Once you have your plan in place, be patient and stay consistent with your debt payoff plan. It’s the long-term patience and consistency that will help you achieve debt freedom.

Find an Accountability Partner

You may have gotten into debt by yourself, but you need help to get out of debt. Find an accountability partner, such as a financial counselor, to help you create your plan, review it and hold you accountable to avoid increasing your debts with frivolous spending.

Look for New Opportunities

Who says you have to stick with your current debt plan. Throughout the year you may have opportunities to apply extra payments to pay down your debt by way of work bonuses, tax return money, etc. You might even have the possibility to sell some things or make quick money to pay off your debts.

Remember Your Reasons for Getting Out of Debt

If there isn’t something beneath all your desire you’re going to fall back into debt as soon as you get out of it. If you’re a Christian, it may be because of your desire to be a good Biblical steward. For others, it may be some life related value that motivates you. Whatever it is, don’t forget about it on your journey!

Visualize Debt-Free Living

Along the same lines, don’t forget about your vision. What does debt free day look like for you? What do you plan to do with the extra money? Will you save more? If so, how will that savings make a difference for you and your family? Keep your vision in mind so you have something to charge towards when the going gets tough.
As I mentioned, cut up those credit cards, but there are more temptations that can impact your spending habits. If you like to spend money at the mall, avoid going. If magazines make you want to buy things, stop looking at magazines or switch to new ones. Figure out your spending weaknesses and guard yourself against them.

Shield Yourself Against Temptation

It’s important to review your debt payoff plan and progress each month. In fact, why not make a poster that graphically helps you track your progress. You can display it for your family members so that everyone can see how close you are to your goal.

Celebrate Wins

If you have more than one debt you may have wins along the way to becoming completely debt free. If so, find ways to celebrate. There are plenty of ways you can have fun without using a credit card and going into more debt. Take the family to your favorite park or rent a move for entertainment, call all your friends and tell them you just paid off a credit card. Whatever the celebration is, make sure you can have some fun and allow the time to pat yourself on your back.

How do you plan to stay on track with your debt plan and pay down your debts? 

This is an article I originally published for Perkstreet Financial.