The following is a guest post about getting out of debt. If interested in submitting a guest post, please read my guest post policy and then contact me.
You. Hey you! Ready to get out of debt? But still feeling a little unsure about it? Well, don’t you worry about a thing. You have this in the bag, and here’s why:
1. You’re Sick of Paying Interest Charges
What’s worse than feeling burdened by debt? Having to pay interest on the debt you’re worried about. Interest can add a huge amount to the principal of your debt, and having to write out checks that reflect that can be painful! That’s why you’re no longer interested in paying more interest than you need to. In fact, you’re ready to look that loan interest in the eye and tell it like it is – some serious changes are on the horizon. That means paying as much as you can on high interest loans, and minimums on the rest. That means making bi-weekly payments. That means – you’re more than ready to move on from your interest charges.
2. You Have a Clear Goals
Sure you want to get out of debt, but you know achieving your goals means more than just getting out of the red zone. It means having a plan, an end-point and importantly a clear idea of where you’re going and what’s motivating you. Why do you want to get out of debt? To finally take that vacation you’ve been wanting to take? To enjoy a meal out without feeling guilty? To make significant contributions to your savings or your retirement? Whatever the reason, you realize the importance of highlighting your goals and using them as motivators for your financial plan.
3. You’re Learning to Think Long Term
Not only have you established your goals, but you’re ready to visualize them. And that doesn’t mean just thinking about tomorrow and taking it bit by bit. You know a marathon is made up of small steps, but you’ve still got your eyes out on the road ahead – maybe even on the finish line. Long-term goals are helping to shape your short-term goals. after-all, the one depends on the other. Paying off your debt will free up cash that can help with your other longer term goals.
4. You Have a Support Network
You’re ready to get out of debt, and you’ve told people about it. Now, you have a cheerleading team chanting your praise. Achieving a debt-free future is hard enough on your own, but assembling a rallying superteam to help cheer you on along the way is a certain boost to your progress. Nobody wants to disappoint the cheering fans on the sidelines! So you’re taking full advantage of your support system, and using their energy to propel you towards your financial goals.
5. You Hope to Buy Your Own House Someday
You love your rental, but the landlord isn’t keen on the idea of you remodeling the kitchen. Just like they aren’t into the idea of adding a trampoline room, or turning the living room into a tiny ice skating rink. But even if their rental contract doesn’t give enough leeway for your creative ambition – you’re OK with that. Especially since you’re already using your imagination to plan out your own potential home. Once debt is out of the way, you’ll be able to focus even more on the idea that you might have a house of your very own.
6. Budgeting Is Your New Hobby
It started with a little cost cut here, a little saving there and all of a sudden you’re bragging about your successful budgeting just like you bragged about beating that video game level. Though budgeting gets a bad rap, you’re kind of digging it – and you’re also kind of excelling at it. No longer do you leave your bank statements unopened, or crumple your receipts. They’re necessary accessories for your budgeting plan! And not only is budgeting a new hobby, knowing where your money goes is helping you on your way to paying off your credit card debt and student loan debt.
7. You’ve Got Powerful Tools at Your Disposal
You’ve got the tools to organize your finances and you’re ready to use them. Organizing your debt payoff, digital updates and a way to streamline the process of efficient payments – you’re not only happy to be working towards a debt-free future, but the designs are kind of fun too! And to boot, life’s easier when you utilize tools to help payoff your debt and relieve some of the pressure on yourself.
8. Responsibility Is Your Middle Name
Nobody would even guess that your middle name is Earl considering how responsible you’ve become with your finances. You’re taking charge of your finances, setting priorities and actually sticking to them. Not only have you decided to get out of debt, you’ve learned that you’re the one who has the power to do so. “And with great power comes great responsibility”… you’ve also realized that it never hurts to use a Batman quote to motivate you.
9. You Can Make More Money If Necessary
You remember the moment you asked yourself “With a name like ‘free time’, why are my weekends costing so much?” And you remember deciding to do something about it by turning some of your free time into paid time. Adding billable hours for side projects, picking up a few hours at an extra job, or putting your specialized skills to use – all ways possibilities for bringing in a bit of extra cash and chipping away even faster at your debt.
10. You’d Like to Retire Early
Ah – sandy beaches, clear waters. You can almost feel the warm breeze on your face. Why almost? Well, because you’re staring at your screen-saver. But that’s OK, because you’re planning for an early (or earlier) retirement and you’re doing everything in your power to make it happen. That includes paying off your debt early and contributing regularly to your retirement fund. Soon enough, you know! Soon enough.
OK – so maybe you haven’t exactly experienced all of these top 10 reasons personally – yet. But there’s no reason you can’t! Even if ‘you’ don’t fit into all the above scenarios, you have the potential to take control and keep up the energy towards your goal of becoming debt free. Simple switches in perspective and frame of mind can be powerful as you continue or begin to tackle your debt! So let’s just go ahead and make the assumption now – you know you can do it. Or are you unsure how to get out of debt.
Author Bio: Claire Murdough is a Bay Area native with an affinity for travel and food. She is a personal finance writer at ReadyForZero.