Extreme amounts of debt can weigh heavy on your shoulders. It has been found that extreme amounts of debt are linked to higher rates of suicide and depression. This is why it’s so important to have an understanding of good debt vs. bad debt and how you can go about paying back your debt efficiently.
Don’t Let it Define Your Life
You, of course, want to have your debt paid off as soon as possible. However, letting it define the value of your life is counterintuitive to being able to pay off the debt. You can enjoy your life while simultaneously paying off debt. A common saying about paying off debt is to think of it as a marathon and not a sprint. You aren’t going to have all of the debt paid off at once, but consistent payments will help get you there instead of burning out from sprinting.
Be Careful Who You Surround Yourself With
It’s hard to stick to a budget when you’re surrounding yourself with friends who want you to spend money with them. It’s difficult to say no to socializing because of the money. At the same time, you should be surrounding yourself with people who understand your financial priorities and support you in those goals. Spend time meeting with financial experts to help guide you in your investments and debt management.
Press Pause on Credit Cards
While credit cards are a great tool when used correctly, they can be a hindrance to paying off debt. Do your best to refrain from using them until you have your debt under control.
Utilize Extra Income
If you receive a bonus or a pay increase, place all or a portion of those funds towards your debt. You won’t notice the difference, besides seeing the decrease in your debt to income ratio!
Start a Payment Plan
In order to keep the momentum going, you should start paying off your most expensive debts first. This typically means the highest interest. Establish a set amount that you will pay each month and work it into your budget. Your amount should be more than the minimum payment due.
Don’t let your debt take over your life. Get control of your dues today!