1. Make Sure Your Debt Payoff Plan Is Realistic
Look at your current income and expenses to calculate the amount you can afford to put toward your debt each month. Create your plan based on the amount you can reliably and realistically pay each month. The plan you start out with may not work for your entire debt journey. Readjusting along the way will ensure you have a plan based on your changing financial situation.
2. Put Your Plan in Writing
Putting any goal, especially money related goals into writing, increases the likelihood that you'll achieve it. Write down your debts, the due date, the minimum payment, and any additional payments you're going to make.
Once you've put your plan in writing, put it in a place that you can refer back to. Adjust your plan as you pay off debts or if you're able to pay more toward your debt each month.
3. Stick to Your Budget
Revist and refer back to your budget throughout the month to be sure you're staying on track. If you overspend, it may leave you with less money to put towards your debt and delay your debt payoff goal. If you overspend, just adjust your debt payoff throughout the month.
If you find that you're constantly going over your budget, review your plan to be sure it fits your true expenses. You might be underestimating your expenses. If you adjust your budget. you may also have to adjust youour debt plan.
4. Take a Small, Planned Breaks When You Need To
The road to realistic debt freedom might be long. Most people will need years to completely pay off debt depending on balances and the amount that can really be applied to the bills. So, to make sure you stick to your debt payoff, you take a small break from your debt plan just to enjoy yourself.
5. Keep the Goal and Financial Freedom In Mind
Picture your life with complete financial freedom. Imagine how great it will feel to no longer have monthly payments and be completely debt-free! You'll own your finances and own your life! Imagine that feelings to help keep you motivated.
Plan to celebrate your debt payoff in a way that's meaningful for you. Whether that is a celebration, an item, or a trip you can now afford, you can take control of your finances and be financially free!