It’ll take forever to pay off your student or other loans if you’re not passionate about getting rid of debt! These seven tips on eliminating financial debt are from a man who paid off his student loans and a $400,000 home mortgage – a man who is passionate about the freedom money brings.
That man is my husband Bruce, and he recently started blogging about financial matters. He’s passionate about investing money, saving money, and getting rid of debt – and he’s good at all three! Plus, he’s planning to retire at age 55. That’s the type of passion I seek!
These tips on getting rid of debt are inspired by his article on eliminating debt. I’ve added a few comments on being passionate about getting rid of debt because I believe that if you’re not passionate about something, you won’t succeed.
How to Get Rid of Debt – With Passion!
One of the best tips on how to get rid of financial debt is to think about what you will be able to do with the extra money once your debt is paid off (or you’re retired). How will you spend your extra money?
And, the most important thing to remember when you’re getting rid of debt is to realize you are in control. You CAN gain control of your finances, get control of your life, and start focusing your passion on more exciting, fulfilling goals.
Accept that debt can be a useful tool. There is a huge difference between good and bad debt. For instance, student loan debt can be extremely valuable – which is why I wrote 5 Reasons to Love Student Loan Debt in College. Don’t hate or curse your student loan debt. It got you where you needed to go, even if you didn’t graduate or get the job you thought you would. If you’re passionate about the reasons you created debt, you can get rid of it faster than if you treat it like it’s a piano tied to your ass.
Be passionate about getting rid of your debt by a certain time. Debt is especially common when we’re starting out in life, but it can follow us throughout our lives. College loans, car loans, credit card loans, mortgage loans, personal lines of credit and overdue taxes – our debt can literally be never ending! To eliminate the “bad” debt, focus on getting rid of the bills that aren’t helping you achieve something in the long run. Set an end date: maybe you want to be free from your student loan debts by 2020, or your mortgage debt by 2030.
Learn how to create a budget. Once you have determined how much debt you’re in, you will need to plan how to get rid of it. The most efficient way to eliminate debt is to make a budget. Determine how much you can pay each month (or more frequently if possible). If your debt is spread out among several different agencies, student loan, credit card/s, car loan, line of credit, store accounts, etc., then perhaps you can have them consolidated into one at a much lower interest rate.
If you’re reluctant to create a budget because you make little or no money, read 10 High Paying Jobs for College Students.
Think about consolidating your debt. Talk to your bank and a couple other banks to see what options are available. A consolidated loan or a line of credit can allow you to pay off more expensive debts right away and that will save you big money. For example, $1000 carried on a regular credit card will cost you about $210/month (21%). The same $1000 on a line of credit might be only $55-95/month (5.5-9.5%) and therefore paying it down will be much faster. This is when being passionate about getting rid of your debt is a good thing: if you are enthusiastic, serious, and committed to consolidating your loans and eliminating debt, then you are more likely to convince the finance guys that you can do it. Your passion and intensity might help convince them to consolidate on your own terms.
Make getting rid of debt a passionate goal in your life. Financial debt costs you each and every day. Don’t feel bad if you have accumulated debt, even if it seems beyond your control. You need to deal with it like any life obstacle. It never helps to feel bad about yourself and your past mistakes – that may only make you ignore them. Without judging yourself, list your debts and add them up.
Part of being passionate about getting rid of debt is learning how the law of attraction works. Read How to Attract Money When You’re Starting Over for tips.
Find ways to track your progress. To help you stay passionate about getting rid of debt, it’s important to visualize your progress. Use a piece of paper or a spreadsheet and record your payment status. This helps to see how much progress you’re making every month. At first it may be difficult to accept how much debt you’re in, but if you have been making progress – paying it down even a little bit every month – it can provide you some incentive.
“You can do it,” says my husband Bruce, who is passionate about retiring at 55 (and so am I!). “You can get rid of your debt and regain control of your money. In fact, once you start seeing your progress and start to feel like you are gaining control you might be able to pay it down faster.”
If you haven’t heard of Dave Ramsey, make sure you check out The Total Money Makeover: Classic Edition: A Proven Plan for Financial Fitness. It’s the number one bestselling book on money, debt, and other financial matters for a reason: Dave knows how to get rid of debt and enjoy financial freedom.
What do you think about these tips on being passionate and getting rid of your debt? Comments welcome below.
If you’re considering an investment that could potentially help you get rid of debt, read Is This a Risky Financial Investment? 4 Things to Consider.