This article is the seventh in a series on how to get out of debt. If you haven’t already, you should check out the previous articles:
- Step 1 – Declare War on Your Debt
- Step 2 – Stop Increasing Your Debt
- Step 3 – Create a Budget & Stick to It
- Step 4 – Find Ways to Cut Back & Earn More
- Step 5 – Build a Starter Emergency Fund
- Step 6 – Make a Plan to Pay Off Your Debt
Step 7 – Focus on Paying Off Your Debt
You’ve got your starter emergency fund, and you’ve got a plan. Now it’s time to focus intensely on paying off your debt! The amount of energy you put into this step will determine how quickly you get out of debt. More focus means a faster victory.
In Step 4, you started looking for ways to cut back and earn more. The purpose was to help you stop spending more than you earn so you could build a starter emergency fund. Now, you’ll use that extra cash to pay off your debt according to the plan you made in Step 6.
To destroy your debt as fast as possible, you must focus on finding every single dollar you can and putting it toward your debt. Sell stuff you don’t need. Get a raise. Stop wasting money. Start a side business. Choose to cut back on some areas. Get a second job. Negotiate lower rates on your bills. Then take the dollars you earn or save and pay off your debt.
You’re going to stick with this step until you’ve finished your debt payoff plan. But don’t worry. You can still have fun during the process. You’ll get out of debt faster if you put every single dollar you can find toward that goal. But if you make yourself miserable because you don’t allow yourself any comforts or luxuries, you will give up.
That’s why the next step is so important. As you make progress on paying off your debt, you need to celebrate your milestones – give yourself rewards. Make sure you’ve signed up for free updates to Provident Planning so you don’t miss out on the next step.
How will you focus on paying off your debt? Let me know in the comments below!