This is the final part of a four-part series called “Overcoming Debt”. Make sure you’ve read Parts I, II, and III before diving into this one.
Up to this point, you should have recognized the extent of your debt, created a repayment plan with a target date, tightened your spending, and found ways to increase your income for faster debt payoff.
So, what’s next?
The key is resilience.
Paying off debt can often be a long, difficult process filled with many sacrifices. There will be times when you feel your patience is tested, and cutting back on expenses might frustrate you, making you question your decisions.
Is it really worth it? Why not just live for today? How long can you keep this up?
To stay committed and show steadfast determination in clearing your debt, here are a few important things to remember.
EXPECT AND EMBRACE SETBACKS
Understand that your journey will have obstacles. Unexpected emergencies might arise and derail your progress, making you wonder if being debt-free is possible. Don’t lose heart.
During our 45-month journey to clear $45,000 in debt, my spouse and I faced many challenges, including a work injury that resulted in almost two months of lost income, a car accident that cost us $1,000 out-of-pocket, and another $1,000 in medical bills from a health issue.
It often felt like we were constantly off-track and had to pause our debt-free dream. But no matter how defeated we felt, we always bounced back.
Life is full of setbacks, but don’t let them become permanent roadblocks. If you keep going, you will eliminate your debt.
Setbacks are a part of the debt clearance journey, so face them head-on and keep moving forward.
REMEMBER IT’S TEMPORARY
One comforting thing about your debt payoff journey is that it’s not permanent. Stay the course, and you will pay it off. There will come a day when your debt balance hits zero.
Debt payoff is not a never-ending process. For extra motivation, you can refer to resources about boosting your debt-clearance momentum.
REWARD YOURSELF
Being debt-free requires a lot of adjustments and sacrifices, which means you can’t always indulge in what you enjoy or buy what you want. But that doesn’t mean you have to live a deprived life, only eating instant ramen throughout your debt-free journey.
Celebrate when you hit major milestones. Allow yourself to spend 10% of your monthly debt-related earnings on something you enjoy, or save it for a dream vacation you’ll take once you’re debt-free.
These rewards can keep your motivation high and might even pay for your holiday entirely in cash. Once you’re debt-free, you won’t need to revert to a financed lifestyle!
Paying off debt is a tough and tiring process, but committing to a debt-free life ensures a secure financial future. With this four-part series to guide you, you have what it takes to start this journey. Best of luck!
Have you faced any challenges on your path to becoming debt-free? Have you ever felt like giving up? What keeps you motivated?