If you are going to succeed in finishing your debt payoff plan then you should know that it will require an insane amount of commitment. You may feel demotivated when you start to realise the amount of time and the number of sacrifices that you need to make in order to see any results.
It can be tough to stick to your debt repayment plan, but if you stick with it, you will see results. Here are some tips that can help you to stick your debt payoff plan.
If your debt payoff plan is unrealistic then it will be impossible for you to stick to it from the get go. If you have overestimated what you are able to pay or have underestimated how much time it will take then you may want to just give up.
However, you can readjust your plan along the way and as your financial situation changes. You should evaluate your current income and expenses and then calculate what you are really able to afford and put towards debt each month.
You should pay more when you can, but your plan should be based on what you can really afford.
You will then need to determine the time it will take you to pay off your debt based on what you are paying each month.
Write Down Your Plan
Write down your plan for your debt as you are more likely to achieve your goal as writing it down is like a commitment that you are making to get out of debt.
Your plan doesn’t need to be complicated, just write down your debts, the due dates, the minimum payments and the extra payment that you will make to just one of your debts.
Once, you have your plan written down, put it somewhere that you can refer to it often. As you pay off debts, you can adjust your plan.
With every payment that you make towards your debt, your balances will go down. The accounts that you are paying the minimum on will only go down a little each month, but the one you are paying more on will be reduced a lot quicker.
You should feel good about every payment you make as you are taking steps to paying off your debt.
Every now and then, take a look at your current balances and compare this to where you where you started and feel good about whatever progress you are making.
Pay More When You Can
Once, you have an amount set to pay each month, stick to it, but if you are able to pay more at any given time then you should.
Don’t Let Setbacks Take You Off Track
There might be a month where an unexpected expense will keep you from paying more on your debt or something might happen, which means you can only pay the minimum payments for a few months.
However, these setbacks should not be a reason to quit your plan. You should determine what happened, if you could have avoided it and then pick up your payments ASAP.
Wait…There are still more tips…
Stick to Your Budget
You will need to create a budget if you plan to pay off your debt. Your budget should include what you pay for bills and necessary expenses. Throughout the month, you should look at your budget and make sure you are on track. If you overspend then you will have less money to put towards your debt.
If you always find that you are going over budget, then review your plan and ensure it fits with your true expenses. If you adjust your budget then you will need to adjust your plan. Your debt plan needs to fit your budget.
Avoid More Debt
Your debt problem will only be made worse by using your credit cards or taking a new loan. Creating more debt will only push your goal further away and you will not make any progress on your debt payoff plan.
You should live within your means and stick to a budget so you don’t need to use your credit cards.
Take Small Breaks
It can take a long to become debt free and it may even take years. If you are only sacrificing then it can make you feel like you want to give up. But why not take a small break from your debt plan every once in a while, to just enjoy yourself.
As you won’t be able to do this often, make sure you spend money on something that will bring you long-term satisfaction. On these breaks, determine an amount that won’t affect your progress, stick to this and don’t go into more debt.
Keep in Mind Why You Are Paying Your Debt
There are a number of reasons for paying your debt off and you should write down these reasons and refer back to them whenever you are feeling unmotivated. It can help you to stick to your long-term debt repayment plan when you remember what you are doing it for.
Paying off debt is not easy and it can take a long time, but the goal is to become debt free and imagine how great that will feel once you reach the end. Celebrate your accomplishments and stick to it and remember why you are doing this.