It’s very good, you have realized, you need to finally get done with debt once and for all. You are ready to make all the necessary payments, might have even planned out your pay off structure, and even dreamt how your debt-free life will be.
But, hold on! There’s a big difference between sketching up something in your mind and bringing that thought of yours to reality. There’s this little thing called discipline and staying focused when you want to accomplish complex life goals.
Paying off debts is no different from the painful task of not losing your focus while you keep on making the payments periodically. Many who start to clear debts, lose concentration after a few months or a couple of years. That’s because they might not have devised a workable plan, and hence get frustrated with time.
You need to show ultimate dedication if you want to really clear the last dime on your debts. The moment you lose interest, you can be sure the game’s lost.
Here’s How You Can Stay Focused When Paying Off Debt
Never Assess how much Time is Left
That’s the big mistake we all make. We estimate a fixed time in our head, believing we can only complete a particular task given that time. That’s good if you can predict the future point blank and straight, with complete accuracy.
We all know no living human is capable of doing so. At most, what you can do is, do your job and leave everything up to time. The more you are worried about time, the more impractical and adrift the human brain starts to think.
Whatever will Happen, will Happen. Whatever will be, will be. Que Sera Sera!!
So, as you are working on your debt payments, you just keep on doing them monthly, without defaulting any month!
If a debt of yours requires two years to pay off, based on you making the minimum monthly payments only, then you should focus more on paying more the minimum payments to get rid of that debt faster, instead of getting interested in the number – “two years”.
Never Talk About your Debts to the Whole World
There’s absolutely no need to tell every other person on the street you have this much debt. That’s entirely your load to deal with. Except for a few people, like your mom, dad, very close buddies, your partner, no one can do nothing about your mess!
The only thing they can do is sit and sympathize with you, which definitely won’t help your situation get better. In fact, you can even get demoralized from so many opinions, and advice coming in like a swarm of bees making you believe, you are in big trouble. Plus, the more you talk, the less focused you become.
Hence, cut the scene short! Only get those people informed, whom you think are really close to you!
Never Lose Faith in Yourself
Most importantly, you are what matters the most. If you believe you can, then you can. Many have been through debt problems in the past, and all overcame it! Many are still sincerely struggling!
You are no different from them. They all have faith in themselves, and so should you. This tip looks small, but it is a vital factor that will let you achieve your debt goal. Thus, forget time, forget what others are saying, and just do your job. Plain and simple!
Have a Budget
Even though you are strong enough not to lose your interest, still you got to have a budget to make sure your finances don’t lose track. A certain percentage of your income needs to be allocated to making more than or equal to the minimum monthly payments. For this, you need to create a budget.
If a budget goes well, then no matter how hard you try, you can never fail to manage your payments. If you don’t want to brainstorm, then you can follow up on the percentage budget. It’s easy to use.
Get a precise record of the total amount you need to be ready with, each month. Have a rough percentage in your head! Similarly, you should breakdown the monthly savings percentage and the overall monthly expense percentage.
Hence, it can look somewhat like, Debt Payments: 40% of your income, Savings: 10% of your income, Food cost: 30% of your income, Other miscellaneous expenses: 20%, and so on. Things can become more beautiful if you set up a different savings account, from which your debt payments can be made automatically.
Also, enable automatic deduction from your checking account to this savings account! So, prioritize your expenses, omit unnecessary purchases, and make room for your debt payments with a proper budget!
Have a Lawyer or a Personal Money Manager
Believe it or not, financial experts can show you how to be debt-free fast, in ways you can never imagine. You might be making high-interest payments when you can legally scrap down all the extra charges, and save a lot on the fees.
There’s a thing called debt settlement. If you consult a lawyer or a debt law firm, then they will do the necessary negotiations with your creditors, and waive off all the penalty fees, unethical interest charges, and/or reduce the original debt amount itself.
You can even switch to keeping a personal journey manager, who can assist you with your financial calculations and taking care of all the monthly monetary obligations.
Have Fun
Lastly, you don’t have to spend your days in exile, just because you are focused on paying off debts. You can have parties, visit pubs, have a date, have family time, and everything! But, you need to be a bit frugal too, at the same time.
You are asked to limit such costly activities! Not totally abstain from them. Just make sure you are not using more debt (like credit cards or loans) to satisfy your needs and wants, till you have cleared your existing debts.
To be precise, a little fun at times, keeps you boosted and motivated to focus on difficult tasks. As they say, All work and no play makes Jack a dull boy!
The day your debts are settled is one of great joy and relief. After all, some weight will be removed from your shoulders. Your life is going to be more relaxed, and free of collections calls, emails and text messages. Here’s what to do after your debts are settled.
