Three Things You Need Other Than Money To Pay Off Your Debt
You’ve determined that it’s time you need to eliminate your debt and free yourself from being captive each month with your debt problems. This is a smart financial decision. However, it’s a decision that will not just cost you money it needs an extensive effort and discipline to be able to achieve it.
We all know that money is the main thing that you need to pay off your debt. However, aside from money, there are other things that you need to be able to achieve your financial goal. Furthermore, deciding to become debt-free isn’t something that you can fix overnight. It’s a long journey that needs smart planning and intervention. Besides, it involves your attitude and your willingness to endure changes in your budget to suffice your debt payments.
3 Things You Need To Pay Off Debt Aside From Money
The following are the main things that you need to consider when paying off your debt besides money. Putting these things in place will make it feasible for you to achieve your goal.
1. A Game Plan
For you free yourself from being in debt. You need to plan your actions. You may need to ask yourself on how are you going to pay down your debt or which debt are you going to tackle first.
This will also include anticipating any shortcomings that may occur along the way. Though you may perceive it easy to pay down each debt by allocating extra payment rather than paying the minimum each month, it might not be effective as it is if you cant determine which debt types to tackle first. So, it is a must to write down all your debts and decide whether you’re going to pay it down through the avalanche method or the debt snowball method.
Besides, you also need to ensure that you will not compromise some of your needs and monthly essentials in putting an extra dollar towards debt payments. Paying your debt is such an important stepping stone to attain financial liberty; hence, just like any other big wins, it is something that needs serious thought, planning, and implementation.
Additionally, in making a plan, you need to make sure that you’re flexible enough to execute your action items and defeat setbacks that may occur along in your journey. You have to stay focus on your goals. Although figures play a vital role in knocking down your debt, you must also focus on the things that you should do to free up some money for your debt payments. This may include trimming your budget, slashing your bills, adopting frugal hobbies and other approaches that you can do such as frugality.
2. The Right Attitude
Paying off your debts takes a lot of discipline and endurance. Somehow it is a way of testing your patience and your resistance towards spending on your wants. Thus, it is imperative that you realize and live by your goals to stay focus and be on track. It can take up years for you to achieve your goals and there is no short cut to it. Hence, you need a lot of patience and discipline. You may also need to find something that can motivate you at times when you feel down and weakened.
Moreover, if you are firm enough not to turn back and move forward with what you’ve started, it can be a big factor for you to sustain debt payments. Besides, if some misfortunes may arise, it would be easy for you to strategize and find ways to be able to overcome it. The bottom line is your commitment towards your goals and the right attitude towards executing your intervention.
Tips To Sustain Debt Obligation
- Be Consistent
If you have decided in making an extra payment every month to come out debt-free real faster, you will surely find a way to comply with your obligation. For instance, you may consider freelancing or getting a second job to earn more money if your earnings are not adequate to suffice debt payments.
- Remind yourself of how far you have come
At times when you feel exhausted or experiencing setbacks, you have to constantly look back where you’re standing and where you’re heading. Just like in any race, you shouldn’t be turning back when you’ve come along way to reach the finish line. Your attitude speaks a lot and your priorities for you to discern at times of misfortunes and uncertainties. Hence, it goes back to your purpose and the rationale of your actions.
- Taking Risk and Endurance
The best attitude to resist downfall and setbacks is the ability to take the risk and pursue your goals despite all odds. It boils down on how you manage things and come up with a plan to compensate your needs and defeat obstacles that may come along the way.
3. A Reward System
Paying debt is a long journey, you can’t avoid the chances of you getting exhausted; hence, you must also give room for a breather for rewarding your self each time you’ve knocked down debt. Tracking your progress will also help to keep the motivation and momentum. Usually, it’s normal for a person to experience setbacks. So, all you need is to come up with away to go forward and recompense your losses.
Moreover, saving while dining out is a way to reward yourself and maybe getting your favorite Starbucks coffee for once might not hurt. The point is you just have to make yourself at ease and acknowledge what you’ve fulfilled.
CONSUMER PROPOSAL EXAMPLE
Example Unsecured Debts
|2||Credit card 1||$6,812|
Your Monthly Repayments Would Be
a Consumer proposal $748
(total contractual repayments)
a Consumer proposal $295
(total contractual repayments)
* Subject to creditor acceptance
* Payment subject to individual circumstances
* Credit rating may be affected
* Fees apply, subject to individual's circumstances.