Diligently paying off debt is no easy feat. It takes perseverance and dedication to hand over your hard earned money like clockwork each and every month. The bonus is seeing all that hard work paying off each time your balance gets lower and lower until finally you’ve gotten that debt completely paid off. This is why the Debt Snowball Method is one of the more widely used methods of debt repayment. When you pay off your debts in order of smallest to largest you feel a sense of accomplishment each time you pay one off and can move on to the next. After paying off a balance of $2K on one debt you can look at the next one of $5K and feel empowered to keep going, but what do you do when your next debt is a large one? Most people find that when they start to get to the end of their snowball the amounts become substantially larger and instead of feeling the excitement of tackling the next debt that excitement is now replaced with dread.
If you find yourself in this position here are a few things to keep in mind.
- Remember why you started. Stepping up the plate to begin tackling a mammoth debt can be discouraging and tempt you to go back to just paying the minimum, but remember why you started. Many of us start out debt repayment journeys because we’re fed up with our current situations. We’re tired of living paycheck to paycheck or not being able to have the option to live life the way we would like. When you get to a larger debt get angry at it all over again and tackle it with a vengeance.
- Stop looking at the Total Amount Due: One of the only ways I can stay sane through this entire process of paying off the mountain of student loan debt that my husband and I have is to not think about the final number. If your student loan has a starting balance of $41K break that down into an amount you can mentally handle. Set a goal for paying off $10K every three months and work towards that. Once you reach the $10K mark pat yourself on the back and start on the next $10K. Before you know it that $41K will be gone and you’ll still have your sanity.
- Switch things up: You’re probably getting discouraged with paying off debt because that’s all you do. Shake up your normal routine, no I don’t mean stop paying your debt I mean do other things in your life that will help you take all the focus off of your debt repayment. Get a new (low cost) hobby, start a new series of books, or do something else you find fun and relaxing. Giving yourself a new routine will help you take your mind off the debt and make it a lot more bearable.
How do you handle the dread of paying off the next debt with a large balance? Share your strategy with us in the comments below.
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