Don’t wait for a resolution, a life-change, or more money – create the discipline of paying on your debt now. Even if you can’t pay as much as you’d like, doing the smallest amount and setting yourself up in other areas will make an impact.
So, we are looking at five practical actions you can start that will put you on the track to staying on top of your debt and ultimately, paying it off. If you’ve been waiting for a sign to start your game plan – this is your flashing neon light.
Start a passive line of small savings. Whether you’ve been saving or not, always start your seasons of paying with saving. If it’s $5 dollars you save, and $5 dollars you pay – so be it – that’s something, and we aren’t shrugging our shoulders at progress. I favor automation as a way of saving because you can be lazy and benefit from it. Here are some ideas about how to save. You should always be saving. Especially, if you’re spending money. The amount isn’t as important as the discipline.
Pick a piece of debt that you can whittle down. Now that you’ve created a stream of savings that you can pull from, you can decide what debt you’ll diminish. There are tons of strategies, here are a few to get you thinking. Pick what fits you. I personally like hitting the highest interest debt first. That’s what works for me.
Outline how much you want to pay off and how much you’ll pay towards each item. Being specific and honest is the best way to confront your debt. Set a goal or goals for items that you want to pay off/ towards. Then decide how much you’ll allocate to smaller pieces of debt – this will differ based on your strategy. It’s important here to consider your season of life. If it’s in your best interest to make big payments towards something – do it. However, if slow and steady is better for you do it. Movement is movement.
Keep focus. It’s not fun or a good time paying off debt. It can feel easy to cut corners, or stop and wait until another time. However, keep focus and stay consistent. That’s the best thing you can do. It won’t get easy, but you’ll get closer. You’ll get to a space where you can re-evaluate and focus your goals in more and see what other options you have. That’s one of the best strategies, pay some, zoom in more, and keep repeating until you’re there.
Follow your budget and make long-term decisions. A budget will help you stay on track. Budgeting your debt and how to pay it is vital. Following a plan will help you eliminate being surprised by numbers. When paying off debt you need to think about the future. Obviously, we can only plan with so much understanding of what will happen. Yet, we can we can do the best we can with what we have. Is your budget non-existent or less than stellar? Read up here on how to start budgeting well.
These actions are easy ways to being to chip away at debt and make it approachable. If it seems intimidating break it down and keep doing that until it’s in pieces small enough to assess. You’ve got this.