Starting a debt-free journey can be exciting, motivating, and a little intimidating. With inflation on everyday expenses like housing, groceries, and gas reaching 40-year highs, it’s not surprising that millions of people are struggling to make ends meet. Add on thousands (or tens of thousands) of dollars in student loans or consumer debt to the mix, and it’s easy to become financially overwhelmed. If you’re on a mission to become financially free, here are three truths about paying off debt.
1. Your motivation to pay off debt will fluctuate.
You know that becoming debt-free is a smart financial decision. Not only will you eliminate costly interest charges and monthly payments when the debt is gone, but you’ll be freeing up cash to invest in things that can add real value to your life, such as travel or funding your retirement accounts.
While the benefits of paying off debt, particularly high-interest credit cards and loans, are obvious, what most people don’t talk about is how you’ll actually feel on your debt-free journey.
Some days you’ll be energized and full of motivation. Maybe you just scored a bonus at work, and can make a big lump-sum payment to your credit card balance. Or you login to your banking app to see that your personal loan balance has been steadily decreasing as you make those new biweekly payments.
When you can actually see your progress and feel a sense of pride and accomplishment, being on a debt-free journey feels good. But more often than not, the day-to-day reality of actually paying off debt is tedious and somewhat anti-climatic.
Seeing a large percentage of your take-home pay eaten up by debt repayments can be frustrating, especially if you’re working to pay off a large balance. You might feel an initial burst of excitement when you make a debt payment, only to have that feeling of accomplishment quickly overshadowed by feelings of frustration, impatience, or anxiety. Don’t worry, you’re not alone.
Paying off debt requires making sacrifices, which is almost no one’s idea of a good time. You might have started your own small business on the side to increase your income, or maybe you’re cutting back on your favorite activities to save money.
There’s nothing wrong with acknowledging that paying off debt is hard work, and sometimes you’d just rather not. The trick is to sit with those negative feelings for a while, even when it’s uncomfortable or you’re used to distracting yourself. Because like all feelings, they will change.
In those moments when you feel down, it might be helpful to zoom out and take a look at the big financial picture. You can compare where you were at the start of your debt-free journey to where you are now, and appreciate all your hard work.
If you’re just starting to pay off debt you can take pride in knowing that you’ve taken the first critical steps to improve your financial future – something many people never do. Give yourself some credit not only for how far you’ve come, but for making the decision to pay off your debt in the first place.
It takes real inner strength to make sacrifices and live with less today to improve your life tomorrow (or five years from now). But you did it. You’re doing it.
Treating yourself to a fun experience or small indulgence when you hit an important milestone can help keep you motivated. Likewise, don’t forget to celebrate the small wins, like getting through another month without racking up any new credit card debt, or passing up those expensive restaurant meals for Taco Tuesdays at home. Acknowledging and appreciating all of your hard work will help keep you going as your debt-payoff motivation ebbs and flows.
2. Some people in your life won’t understand your debt-free journey.
Although talking about money is becoming mainstream, paying off debt arguably is not. In a culture where we’ve been trained by everyone from our peers to the media to endlessly consume, it can be challenging to find people who really understand your desire to become debt-free.
We’ve been conditioned to think of having monthly car notes and large credit card balances as inevitable. If you want to pay off your consumer debt, you know that this just isn’t true.
Many people, myself included, strive to live our lives owing the least amount of money to the least amount of people possible. You’d better believe that not everyone thinks this way (I know, shocker, right?)
Your friends may tease you for skipping out on those pricey concert tickets, or for bringing your lunch to work everyday. Your family, especially young children and teenagers, may be confused, bewildered, or downright upset about the changes you’re making when the focus is on debt freedom, not on acquiring more ‘stuff’.
And you know what? That’s okay. You’re allowed to change the house rules. You’re allowed to prioritize your family’s financial safety over drowning in debt. You’re allowed to disappoint people. It’s not selfish or a bad idea to stop spending (or overspending) on things you don’t actually need in order to get ahead financially.
If you find that the people you normally confide in don’t understand why you’re working so hard to pay off debt, or don’t support your goal, that’s okay too. Everyone is entitled to their own opinion.
Sometimes, seeing you make positive changes in your financial life is hard for the people closest to you to accept. This could be because you’re inspiring them to take a hard look at their own financial picture – and they don’t like what they see. It might be easier for them to put you down, or withhold their support, than it is to make changes in their own financial life.
Society at large has bought into the idea that ‘everyone has debt’ and that ‘owing money is just how life is.’ I’m here to remind you that this just isn’t true.
Your life is what you make it. If you decide to make it debt-free, congratulations. You’re making a smart financial decision for you and your family.
3. Taking a balanced approach to paying off debt can be the compromise you need to succeed.
Paying off debt and working hard to survive (and thrive) on a debt-free journey can be tough. FOMO (Fear of Missing Out) is real, especially when you see your colleagues and friends enjoying experiences and spending money while you’re trying to cut back.
Some days, the thought of paying off debt can be as difficult as actually doing it.
Try not to judge yourself too harshly during those times when you feel weak or if you fall off the debt-free wagon. As productive as it might be to go full-force and devote 100% of your extra money and resources towards paying off debt, this isn’t always necessary—or healthy.
Taking a more balanced approach to money management is crucial if you find yourself really struggling, losing hope, and feeling tempted to give up altogether. Scrolling social media and seeing all the great new things your friends are buying and the exciting vacations they’re taking is notorious for triggering FOMO.
Try deleting your Facebook, Instagram, and TikTok apps during the week, and reinstalling them again on the weekend. Not only will you save time and be less tempted to spend money, but you won’t be comparing your private life to everybody else’s highlight reel. It’s a win-win-win.
As someone who has survived my own financial journey and come out debt-free on the other side, I honestly believe that striking a healthy balance between spending and paying off debt is key.
Trying to get to a better place financially doesn’t mean depriving yourself of every little (or big) luxury along the way. For many people, that’s just not realistic or sustainable over a long period of time. A few months, maybe. But if your debt payoff plan is projected to take a few years? You might need to build in some flexibility.
Sometimes being successful does mean delaying gratification and doing without something for now, but not forever. Other times it means prioritizing your mental health (or your kid’s birthday party) and spending more money on that treat or gift than you might have initially planned. Yup, I’m talking about spending money when you swore you wouldn’t.
Is blowing the budget by spending an extra $200 every few months on a gift or little luxury the perfect solution to overcoming FOMO? No. Should you start racking up the credit card debt again because you’re sick of budgeting and really want that new Gucci purse? Also no.
But making a conscious decision to pay off debt doesn’t mean that you can never cash-flow another ‘want’ until that darn Visa card is finally at a zero balance.
This is your debt-free journey. That means you make the rules around here. No guilt, no shame.
If you’re truly at a place where you’re ready to give up on paying off debt altogether, let’s seriously consider harm-reduction rather than full-blown financial abstinence. Don’t set yourself up for failure by being too hard on yourself and setting unsustainable, unrealistic spending goals.
Going through life with a scarcity mindset and squirreling away every last nickel in a panic isn’t my idea of winning with money. I believe that having a healthy money mindset is about achieving balance.
If treating yourself or your family once in a while keeps you sane, motivated, and paying off debt, then so be it. Even if it takes a little longer to reach your financial goals, at least you’re not giving up on them in despair. I’d consider that a win, no?
I’m reminded of the dieter who restricts his food to the point where he becomes totally frustrated, gives up, and binges on a carton of Ben & Jerry’s ice cream. By choosing a more balanced eating plan in the first place, he could have enjoyed an ice cream cone guilt-free by deciding to treat himself to his favorite dessert once a week.
Just like dieting, being on a debt-free journey doesn’t mean that resigning yourself to a life of all-or-nothing, endless depravation is the only way to succeed. By taking a balanced approach to paying off debt and managing your money, you could be more likely to stay motivated, achieve your goals, and enjoy your life along the way.
So in a nutshell, if you’re just starting your debt-free journey – or feel like you’re faltering on one – remember these 3 helpful truths
- Your feelings and motivation to pay off debt will change throughout your journey. Give yourself credit for doing something that can be hard, and remember to celebrate your small wins along the way.
- Some people in your life won’t understand your debt-free journey. You know that it’s impossible to please everyone all the time. Sometimes sacrifices need to be made. If you’re doing what you believe is right to improve your financial situation, it shouldn’t matter what anyone else thinks.
- Taking a balanced approach to paying off debt can be the motivation you need to succeed. Enough said! Don’t let FOMO or debt-payoff fatigue sabotage your financial future.
You’ve got this.
For even more information, be sure to download our free, full-length Money Mastery Playbook. It includes tons of money tips and motivation, plus 7 bonus personal finance printable worksheets to help you get your money life organized, starting today.
