Seventy-three percent of American consumers reach the end of their lives while still in about $61,554 of debt (a figure that includes mortgage debt), according to a study by Experian FileOne and Credit.com. Whether you owe $300 in credit card debt or $85,000 in student loan repayments, being in debt is a heavy weight on your conscience—especially if you’re trying to stay on the path to Financial Freedom. So how do you stay sane as you pay off debt?
Trying to pay off debt can make you feel crazy, giving way to frantic thoughts of, “how will I ever pay off XYZ and get out of this mess?” Or act crazy by engaging in 100 hour work-weeks. You may try to bite off more than you can chew, by putting every ounce of extra cash into payments, only to burn out and overspend.
If taking deep breaths and powering through were enough to cure this feeling, problem solved. But they aren’t, and it’s not.
So then, where does that leave you? How can you stay mentally balanced when you owe money, instead of awash in guilt, hopelessness or a plethora of other negative emotions?
5 Strategies For Staying Sane As You Pay Off Debt
Once you’ve realized your debt stress isn’t working for your mental wellbeing, you’ve taken the first step toward true Financial Freedom. Now, you just need to live in debt-payback mode for however long it takes. There is a faster, healthier way to pay off debt, but while you’re in the process, there are five strategies to keep you motivated (beyond those deep breaths!):
Strategy #1: Look At The Big Picture Around Your Debt
Dr. Tony is the co-founder of MindShift.money and the best-selling author of three books on personal and business finances. Having achieved Financial Freedom at 27, Dr. Tony believes that through Financially Fit Bootcamp and Cash Flow Cure everyone can get there. He has made it his life’s mission to help others live a life where their money works for them—not the other way around.