Ideas and tips to help you stay motivated and inspired to pay off debt.
A: If you want to "get inspired" to pay down your mortgage or car loan just tape an amortization chart on your fridge so you are constantly reminded how much your "paying" for the luxury of a loan.
A: A simple home made graph - the bigger the better - is very motivating. Decide when you want to pay off your debt. Divide the amount by the number of months to get a monthly figure. Draw a graph with the amount on the left hand vertical axis, divided into monthly amounts. On the bottom horizontal axis write the months. So if your debt is $2000 and you aim to have it paid off in a year you will have to pay minimum of $167 a month + interest. When you start put a black dot on the first month at $2000 and aim to save $167 + interest. If you make it put another dot on the next month on your goal amount line. If you don't make it put the dot in red and try harder the next month. When you join the dots you should see a continuous downward trend, even if you don't make the full payment the line should still go down. You don't even have to nominate a set amount each month as long as the debt is falling. And you can set up your graph for fortnightly or weekly amounts. I find this method very motivating - even if I have a bad month I don't feel I want to give up as I know I am heading in the right direction!
By Jo Bodey
A: We had to pay off a $100,000 business loan. Yikes! To motivate ourselves, we planned special dates each time we paid off $10,000. We went to different restaurants, each one better than the last. We started at McDonald's. By the end, we dined at a find French restaurant!
Post your ideas below.
CALCULATE HOW MANY (AFTER TAXES AND EXPENSES TO GET TO WORK) HOURS YOU NEED TO WORK TO CALCULATE THE REAL COST OF AN ITEM NOT JUST MONEY BUT TIME AWAY FROM HOME, FAMILY OR JUST FUN AND EARLY RETIREMENT. AFTER ALL, THE MONEY YOU'RE USING TO PAY OFF YOUR DEBTS COULD BE INVESTED FOR RETIREMENT. WHY LIVE A DEBT-FULL LIFE NOW IF WE NOT GOING TO BE ABLE TO AFFORD THE UPKEEP OF IT DOWN THE ROAD.
TO HELP ME STAY FOCUSED I PRINTED AND TAPED TO MY CHECKBOOK AND WALLET THE FOLLOWING SCRIPTURES:
1 TIM 6:7-10
IT HELPS ME!
In a business law class I learned that there are only three ways out of debt:
1. Pay it back.
2. Declare bankruptcy.
The last two are unacceptable to me, so like others on this forum, I think real hard before parting with money that I worked for.
Add your voice! Click below to comment. ThriftyFun is powered by your wisdom!